Bangladesh Apparel Exports Are On An Upward Trajectory In The First Quarter Of 2023–2024

50 Star US Inc.

During the first four months of the current fiscal year 2023–24 (July–October), exports of ready-made clothing have generally increased. The growth in this instance has been roughly 6%. Over the previous four months, exports to the EU rose by 4%. However, there was a 3% decline in clothing shipments to the US. Moreover, exports to Canada decreased by 1.5%.

Bangladesh exports over half of its garments to the European Union (EU) in terms of money. Additionally, the United States imports around one-fifth of the entire garment production.

Additionally, exports rose by 14.5 percent to the UK and 17 percent to non-traditional new markets. Following an analysis of Export Promotion Bureau (EPB) data, BGMEA announced these on Wednesday, November 15.

The total amount exported of ready-made clothing in the fiscal year 2022–2023 was $46.99 billion. The growth rate was 10.27% at the time. The current fiscal year has seen the export of ready-made clothing valued at $14.78 billion in the first four months. Compared to the same time in the previous fiscal year, this export is 5.95% greater. The value of garment exports in the first four months of the previous fiscal year was $13.95 billion.

Ready-made clothing exports from Bangladesh to EU nations totaled $7.07 billion in the first four months of the current fiscal year. Exports of clothing manufactured in Bangladesh to 12 out of the 27 EU nations decreased during this time. There are now fifteen more. Germany, Spain, France, the Netherlands, Italy, and Poland are the EU nations that export the most apparel. Only Germany experienced a decline in exports out of these six key EU destinations.

Exports to Spain, France, the Netherlands, and Italy have climbed by 18.07 percent, 2.566 percent, 12.73 percent, and 9.88 percent, respectively, according to the EPB data. However, from $2.04 billion in July-October 2022–2023 to $1.81 billion in July–October 2023–24, Germany—the EU’s largest export market—saw a fall of 11.49 percent.

On the other hand, $2.58 billion worth of clothing was exported from the US market in the current fiscal year between July and October. $2.87 billion worth of ready-made clothing has been exported to new markets in the first four months of the current fiscal year. Among the new markets, garment exports rose to South Korea, China, Japan, Australia, Russia, and the United Arab Emirates (UAE), excluding India.

Regarding the general state of the garment export industry, BGMEA Spokesperson Mohiuddin Rubel, Managing Director of Bangladesh Apparel Exchange, stated: "Our garment exports to the European Union have increased marginally." It's not quite sufficient. While exports to Germany, the continent's biggest market, may have slightly increased in several European nations, we are undoubtedly concerned about the 11.5 percent decline in exports to Germany.