Bangladesh’s ready-made garment (RMG) export to the European Union (EU) reached $13.92 billion during the July-January period of the current fiscal year with a growth of 1.32% compared to the same period of the previous fiscal year, according to the latest data from the Export Promotion Bureau (EPB).
RMG exports to Spain, France, the Netherlands and Poland showed 6.05%, 4.25%, 11.77% and 20.30% growth, respectively, reports BSS.
According to EPB data, Bangladesh exported apparel items worth $28.36 billion in July-January of FY24, marking a 3.45% year-on-year growth, compared to the same period of FY23.
However, apparel exports to the USA witnessed a 3.90% drop, reaching $4.79 billion in the first seven months of FY24. Also, exports to Italy dropped by 1.81% and to Germany, the largest export market of Bangladesh in the EU, dropped by 13.46%, fetching $3.51 billion in the July-January period of FY24, data shows.
At the same time, the country’s exports to the UK and Canada reached $3.31 billion and $871.27 million, respectively, during these seven months of FY24 with a growth of 12.98% and 0.68%.
Exports to non-traditional markets rise by 11.69%
During the July-January period of FY24, apparel exports to non-traditional markets grew by 11.69% to $5.46 billion from $4.89 billion in the corresponding period of the previous year.
Among the major non-traditional markets, exports to Japan, Australia, South Korea and Russia increased by 8.74%, 23%, 17.57% and 26.01%, respectively.
However, the apparel exports to India declined by 21.86%.
RMG exporters optimistic
Exporters attributed the decline in exports to the USA and German markets to decreased demand amid inflation, yet they remain optimistic about growth, citing the anticipated economic recovery in both countries.
BGMEA President Faruque Hassan told TBS, “Although global apparel demand is sluggish, we are faring better than other exporting nations.”
He expressed optimism that 2024 would be a productive year for business, citing the recovery of apparel-importer countries as inflation rates started to drop.
Faruque Hassan also acknowledged the role of non-traditional markets such as Japan, Australia, South Korea and Russia in sustaining the overall growth.
