The export of readymade garments (RMG) witnessed a slight growth of 3.67% in 2023 to $47.39 billion, up from $45.71 billion in 2022, according to data from the Export Promotion Bureau (EPB).
Among the twelve months of 2023, RMG exports faced negative growths in five months and witnessed positive growths in the other seven months, meaning the sector’s growth fluctuated frequently and left the year as turbulent for the sector.
The month-wise export performance for the year 2023 showed that the year started well with modest growth of 8.24% and 12.31% to $4.42 billion and $3.994 billion in January and February, respectively.
However, then the exports dipped in March and April by 1.04% and 15.48% to $3.9 billion and $3.32 billion respectively.
The positive trend in growth was restored and maintained during May-September, when Bangladesh earned $4.05 billion in May, $4.36 billion in June, $3.95 billion in July, $4.04 billion in August, and $3.91 billion in September.
Then the exports further started declining for three consecutive years by 13.93% to $3.16 billion in October, by 7.45% to $4.05 billion in November, and by 2.35% to $4.56 billion in December.
However, the exporters said that the RMG export turnover in 2023 remains historic in a single year, considering the global economic and geo-political crisis.
Regarding 2023 exports, BGMEA President Faruque Hassan said that, however, for the full year (2023) the growth has increased slightly amid the global apparel trade and the ongoing economic situation.
“We have done well. It could have been done better if we had not faced domestic hurdles like gas shortage, electricity shortage, bond and customs-related issues. But if we take the global market, inflation, turbulence etc into consideration we have done better than our competitors,” he added.
BGMEA Director Mohiuddin Rubel said that the imports of major markets declined as most of the advanced economies are struggling due to high inflation and the impact on consumers due to monetary policy measures taken to contain inflation.
“Since the growth curve of global clothing trade falters every year, we believe that 2024 will be a year of turnaround since 2023 was a weaker year for this industry globally,” he added, saying that there are some indications of a turnaround as the consumption and spending will rebound soon.
He also said that despite all the challenges, the industry continued its commitment and efforts toward sustainability.
The minimum wage was declared which came into effect from December 1, 2023; the transformation of green industrialization continues with more robust performance; and the industry is making visible progress in reducing emissions, he added.
Moreover, export diversification in terms of markets and products is also going on and they hope for more strategic investment in 2024.
“There are certain challenges that our economy is facing currently. I believe 2024 will bring a breath of fresh air in it as we expect a positive shift,” he added.
He urged continued support and collaboration from all stakeholders including government, development partners and others.
