Bangladesh's garment exports are likely to grow by about 15 per cent this year after growing by over 30 per cent in 2021.
As per a Reuters report, Bangladesh’s garment industry accounts for more than 80 per cent of its total exports for Bangladesh, which sells to clients such as Walmart , Gap Inc, H&M, VF Corp, Zara and American Eagle Outfitters - some of which have already flagged weak sales as their customers prioritize basics.
The slowdown follows a surge in sales in 2021 after coronavirus lockdowns eased and government stimulus measures left consumers with disposable cash, leading to what some experts have dubbed "revenge shopping".
Bangladesh’s garment exports soared by 30.4 per cent to $35.8 billion last year, the biggest year-on-year jump in about 25 years. BGMEA data since 1994 shows a big jump in exports in a year is typically followed by slower growth in the next.
FazlulHoque, Managing Director, Plummy Fashions and Former President, Bangladesh Knitwear Manufacturers & Exporters Association, says, exports would rise by about 15 per cent this year.
He said exports could grow to between $38 and $40 billion this year - or 6 per cent-12 per cent growth - and that the next year could be even worse if the global economy tips into recession.