Bangladesh has kept its position as the world’s second largest readymade garment (RMG) manufacturer in global RMG trade last year, according to the latest data published by the World Trade Organization (WTO) last Thursday.
In the report titled “World Trade Statistics 2023: Key Insights and Trends”, the WTO also said that Bangladesh’s RMG exports were worth $38 billion, although it was 15.55% lower than total export of 2022, which was $45 billion.
Moreover, Bangladesh’s global share of RMG exports also witnessed a decline to 7.4% in 2023, which was 7.9% in 2022. In 2021, the share was 6.40% which experienced a significant leap in 2022.
However, data from the Export Promotion Bureau (EPB) says Bangladesh exported RMG goods worth $47.39 billion in 2023, but according to the WTO report, it was $38 billion.
This led to the recent and major discrepancy that was found among the export data of the Bangladesh Bank and the EPB.
The export earnings published by the WTO did not correspond with that of the EPB and a discrepancy of around $9 billion was also uncovered.
Top RMG players
Among the major RMG exporters, China remains the largest exporter of the RMG products in the global market with a 31.6% market share and the country exported RMG goods worth $165 billion in 2023.
Vietnam, Bangladesh’s arch rival in RMG export, has lagged significantly behind this year.
The Southeast Asian country secured third position with a market share of 6% and exported apparel items worth $31 billion in 2023.
In 2023, Turkiye exported apparel items worth $19 billion and secured the 4th position with a market share of 3.6% where India obtained 5th position with a market share of 3% and exported apparel items worth $15 billion, said the WTO data.
Among the major importers of the RMG goods, the European Union remained at the top with 35.8% of global share, imported apparel goods worth $203 billion, where the USA is second, with 15.7% of share and imported $89 billion in 2023.
Japan imported clothing worth $26 billion in 2023, with a global share of 4.5%, where the UK imported $21 billion (3.8% share) and South Korea imported $13 billion with a 2.3% global share.
Regarding the merchandise trade, the WTO report said that in 2023, the lingering effects of high energy prices and inflation weighed heavily on demand for energy-intensive manufactured goods. World merchandise trade volume fell by 1.2% after a 3.0% expansion in 2022.
Trade contraction was sharper in value terms, recording a 5% decline, due to reduced volumes, lower prices for primary commodities, and exchange rate fluctuations. Despite the decline, the value of merchandise trade was 25% above 2019 levels.
In 2023, world trade in goods and commercial services fell on average by 2% to $30.5 trillion, on a balance of payments basis. Trade in goods declined by 5% whereas services trade took an opposite trajectory, increasing by 9%.
As a result, the share of goods in global trade decreased from 77.8% in 2022 to 75.3% in 2023, while the share of services reached 24.7%, up from 22.2%, said the WTO data.
Some four years after the beginning of the Covid-19 pandemic and its resulting impact on trade, this breakdown between goods and services mirrors the situation in 2019.
