In January of this fiscal year, Bangladesh experienced a decline in its garment exports to USA, specifically in the shipment of knitwear items to the largest market.
Data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) showed that exporters sent $4.98 billion worth of garments from July to January, down 1.98 per cent from $5.08 billion during the same period the previous year. While woven garment exports grew 6.7 per cent, shipments of knitwear slumped 17.6 per cent during the period.
In December of last year, export receipts for apparel shipped to the US, which bought almost one fifth of the overall earnings from clothing exports last year, were positive.
However, this is the first time in four years that apparel exports to the US declined, amid fears of recession. Mohiuddin Rubel, director of BGMEA, said that high inflation in the US is a factor behind the decline, and if this continues, overall export earnings may become negative. However, Rubel added that increased exports to non-traditional markets have offset the fall in shipments to the US, which is a positive development.
Overall earnings from garment exports grew 14 per cent year-on-year to $27.41 billion from a year ago until January of this fiscal year, mainly due to good performance in other markets, including non-traditional ones. According to data from the Export Promotion Bureau, apparel exports to the European Union (EU) during July-January of FY23 increased by 15 per cent to $13.73 billion, up from $11.94 billion during the same period a year ago. While Germany, being the largest European market, fetched $4.06 billion with only 0.83 per cent year-on-year growth, exports to other EU countries grew at an increased pace.
Among the major non-traditional markets, exports to Japan soared nearly 46 per cent year-on-year to $920 million. Additionally, shipments to other non-traditional markets were also higher, with exports to Malaysia growing 92.7 per cent, Brazil 64.1 per cent, and India 58 per cent, respectively.
