Bangladesh's apparel exports to the European Union increased by 24.09 per cent to €1.53 billion ($1.57 billion) in November 2024, primarily driven by easing inflation and declining interest rates in Western nations. This boost in demand for Bangladesh's apparel came as the EU's economic recovery gained momentum, with shipments showing consistent growth over four months leading up to November, according to Eurostat data.

In the first 11 months of 2024, Bangladesh's apparel exports to the EU showed positive growth in six months, with four months seeing double-digit increases ranging from over 20 per cent to nearly 34 per cent. Although some months experienced negative growth, the overall trend was positive. Notably, apparel exports to the EU’s largest market rose by 2.53 per cent, surpassing the global average growth of 0.34 per cent.

Bangladesh’s apparel exports continued to thrive, maintaining its position as the second-largest apparel exporter to the EU, just behind China. Bangladesh’s cost-effectiveness, increasing focus on sustainability, and the shift of orders from China due to trade tensions have all contributed to its success.

Knitwear exports from Bangladesh increased by 0.89 per cent to €10.05 billion, while woven garment exports saw a more substantial rise of 5.13 per cent, growing from €6.35 billion to €6.67 billion. The strong recovery in shipments during the EU's peak retail season from August to November 2024 reflects the growing demand for high-value-added products.

Abdullah Hil Rakib, Managing Director, Team Group, emphasized, Bangladesh's growth is linked to the EU’s recovery from ongoing wars and inflation. However, he raised concerns about proposed energy price hikes and potential labor wage increases, which could affect the country’s competitiveness. Despite these challenges, there remains optimism for sustained growth in Bangladesh's apparel exports, driven by favorable global demand and government support.