Bangladesh’s apparel exports fell seven per cent in September 2022. However during the first quarter apparel shipments were 13 per cent higher compared to the corresponding period of the previous year.

Apparel exporters of Bangladesh expect a turnaround in demand for their products in western markets by mid-2023 and till then they want to book every order – even if it offers a break-even price – in order to survive amid the present slowdown in business. The industry is experiencing a slowdown as retailers are stuck with too much inventory at their stores as demand has fallen due to a mild recession in the USA, Europe and the UK. Most factories are getting fewer work orders, which is being reflected in export earnings. This untoward trend is expected to continue till April or May 2023.

The hope is that the global geopolitical situation will improve by the second quarter of the next year, which will lead to a robust recovery in consumer spending in the key export destinations due to pent-up demand. Rising political tensions between the US and China may help Bangladesh grab more orders shifting from China, Vietnam, and Myanmar. Already a number of South Korean brands and retailers are coming to Bangladesh to open sourcing offices.