Three-quarters (76 percent) of Bangladesh’s product exports are to 12 countries including the United States and Germany. Exports to each of these countries exceed $1 billion. Australia is the newest addition to this billion-dollar club.
According to the Export Promotion Bureau (EPB), the top 12 export destinations of Bangladeshi products in the outgoing financial year are the United States, Germany, the United Kingdom, Spain, France, Italy, the Netherlands, India, Japan, Poland, Canada and Australia. Among these countries, only the United States, Germany and Poland saw a decline in exports. While other 9 markets have increased from 7 to 40 percent.
In the outgoing financial year 2022-23, a total of $55.56 billion worth of goods were exported from Bangladesh. The top 12 export destinations and countries have exported products worth $42.04 billion. In the previous year, exports to these markets were worth $41.10 billion. Exports to these countries increased by $1.93 billion in one year.
The United States has been the top export market for Bangladeshi products for a long time. Exports in this market exceeded $10 billion for the first time in the financial year 2021-22. No other export market has touched this milestone before. The Russia-Ukraine war and its effects led to high inflation, which led to a decline in commodity demand in the current financial year. As a result, exports to the main market fell to $9.7 billion, which is about 7 percent less than the previous year. 88 percent of the total exports to the United States are readymade garments.
Germany is the second-highest destination for Bangladeshi products. In the intervening months, however, this country became the top destination. In the outgoing financial year, the country has exported goods worth $7.08 billion. In the previous financial year 2021-22, the export of this market was $7.59 billion. That means exports to this market fell by 6.7 percent in the last financial year. Garments accounted for 94 percent of Germany’s total exports during the financial year, valued at $6.68 billion.
The UK is the third-highest exports of goods last financial year at $5.31 billion, up nearly 10 percent from the previous financial year. At that time i.e. in the financial year 2021-22, the goods exported to the United Kingdom were worth $4.82 billion. RMG exported worth of $5.03 billion.
The fourth largest importer of Bangladeshi products is Spain, a member of the EU. The exported goods to Spain worth $3.68 billion in the outgoing financial year, which is 16.33 percent more than the $3.17 billion of the previous year. Manufactured garments are also the top export products in these markets like USA, Germany and UK. 97% of total exports to Spain were readymade garments.
France, another EU country, is the fifth top export destination for Bangladeshi products. In the last financial year, the country has exported goods worth $3.29 billion. In the previous financial year, the country exported goods worth $2.71 billion that is, the export in this market has increased by 21 percent in the outgoing financial year. Readymade garments is also the largest export product in France.
Among the other countries in the billion-dollar club for importing products from Bangladesh in the outgoing financial year, Italy took $2.39 billion and Netherlands $2.09 billion worth of goods. Among them, exports increased by 40 percent to Italy and 18 percent to the Netherlands. Apart from this, products worth $2.13 billion have been exported to India. Exports to this market have increased by 7 percent.
In the financial year 2022-23, goods worth $1.90 billion were exported to Japan and $1.85 billion to Poland. Exports to Japan increased by 40 percent, while exports to Poland fell by 13 percent. Apart from this, products worth $1.72 billion to Canada and $1.26 billion to Australia were exported in the last financial year. Among them, exports to Canada increased by 13 percent and Australia by 37 percent.
By analysis of EPB data it is seen that 84.57 percent of the total exports in the just-ended fiscal year were readymade garments. However, 92-97 percent of the total exports to Germany, UK, Spain, Italy, Poland and Australia are ready-made garments. And 84 to 90 percent of the total exports to the United States, France, the Netherlands, Japan and Canada are readymade garments. And 47 percent of India’s total exports are ready-made garments.
