Bangladesh’s export earnings in the first quarter of the current fiscal year posted 0.83% growth, the lowest in last five years due to slow performance of the largest RMG sector.
According to Export Promotion Bureau (EPB) data released yesterday, in the first quarter of the fiscal year the country earned $7.76bn.
The figure was $7.7bn during the same period one year ago.
The exports were short of target by 4.25% as the government aimed to earn $8.10bn in the July-September quarter.
The apparel sector, the main export earner for the country, has posted a 3.31% growth to receive $6.44bn during the three months.
Knitwear products earned $3.25bn with 0.62% negative growth, while woven garments fetched $3.19bn rising 7.64% from the same period last year.
In September, the total export earnings marked 2.5% rise to $2.62bn compared to $2.55bn last year.
The figure is nearly 7% higher than the month’s target of $2.45bn.
“Export earnings made slow growth due to reduction of orders’ unit prices, especially in the RMG products,” Faruque Hassan, senior vice president of Bangladesh Garment Manufacturers and Exporters Association, told the Dhaka Tribune yesterday.
The global retailers, especially from European Union, cut prices of apparel products due to devaluation of euro and Australian and Canadian dollars against US dollar, he said.
“There was also impact of political unrest slowing down the growth as placing of orders were hampered,” Faruque said.
He said the major concerning issue for the country is the loss of competitive edge.
BGMEA former vice president Shahidullah Azim said the negative earnings, caused by shortage of orders, from the knitwear products affect the overall export volume.
Azim fears further downward trend as he thinks the Transpacific Partnership may affect orders in Bangladesh.
“We have to come up with new measures to remain competitive in the global market as 9.5% monthly growth is needed to meet the target,” he said.
Among major sectors, frozen foods export fell by 37% to $120m, which was $191m in the same period last year.
Leather and leather products export declined by 11.47% to $273m, while home textile export went down by 13.20% to $160.50m. The export of jute and jute products grew by 4.63% to $206.56m.