Bangladesh’s readymade garment exports grew 35 per cent in 2021-22. However in the first month of the new fiscal year the growth was only 16 per cent. Consumers in the US, the UK and European Union countries, the major markets of Bangladesh’s readymade garments, have been facing the pressure of inflation.Sales in apparel shops in those countries have dropped and stocks have been piling up in warehouses. As a result, the rate of new orders for the next two seasons has been declining.

Retailers are suspending current orders as their sales have reduced due to high inflation whereas new orders have decreased as well. Therefore, Bangladesh’s trade will remain low for two to three months. Walmart, an American multinational retailer, has cancelled orders worth billions of dollars given to manufacturers across the world for August. This worries many garment traders of Bangladesh as Walmart is one of the top buyers of Bangladeshi apparel products.

On the other hand buyers are shifting their business from China because of the trade war, coronavirus restrictions and the ban on the use of Chinese cotton. This could give a raise to Bangladesh’s exports. Many buyers are hoping to shift a significant portion of their business from China and expand their business in Bangladesh.