The country's export earnings experienced a year-on-year (YoY) negative growth of 2.49% in March of the 2022-23 fiscal year (FY).
The earning came down to $4.64 billion in March 2023 from $4.76 billion in the same period of the last fiscal year.
According to the recently published data from the Export Promotion Bureau (EPB), the country's earnings for March dipped below the $5 billion mark for two consecutive months after three straight months from November to January.
Moreover, the export earnings also experienced negative growth since November of FY23.
The export earning target for March this year was $5.02 billion, which was $4.76 billion a year ago.
The RMG sector, the highest export earner of the country, bagged $3.89 billion in March of FY23, fetching 1.04% negative growth from $3.93 billion in FY22, EPB data stated.
The receipts stood at $41.72 billion in the first nine months (July-March) of the current fiscal year FY23, an increase of 8.07% from $38.6 billion in the July-March period of FY22.
Earnings from apparel exports during the nine months rose 12.17% year-on-year to $35.25 billion in July-March, higher from $31.42 billion in the mentioned period of FY2021-22.
Within the apparel sector, knitwear exports brought home $19.13 billion, up 11.78% compared to a year earlier, where woven shipment generated $16.11 billion, an increase of 12.63%, EPB data showed.
Among other major earners apart from apparel, only leather and leather goods witnessed a positive growth of 2.56% to $919.73 million, higher than $896.8 million in the same period of the last FY, making the sector the second earner.
With consecutive growth over a certain period, the earnings from the home textile sector have been declining since last November.
The sector earned $859.94 million in July-March of FY23, fetching a negative growth of 25.73% from $1.15 billion in the same period of the last FY.
The promising agricultural sector also witnessed a consecutive negative growth of 28.31% to $687.09 million in July-March period of FY23, lower than $958.45 million in the mentioned period of FY22.
The earnings from jute products also dropped by 21.23% to $698.7 million in the mentioned period, which was $887.06 million in the same period of the last fiscal year.
The engineering sector, another promising sector of the country, also experienced negative growth of 33.65% to $400.28 million in the July-March period of FY23, lower than $603.32 million in the same period FY22, EPB data stated.
Talking to Dhaka Tribune, Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that they have been fearing negative growth since November-December.
“There are not enough work orders and the majority of exporters are running their units at 60%-70% capacity,” he added, saying that most of the factories shut their operations at 4pm every day.
The economy of the major destinations is also under pressure due to the Ukraine-Russia war. Due to inflation and global economic turmoil, consumers are on a go-slow policy which impacts their purchasing practices. Moreover, their purchasing capacity has also come down amid the economic turbulence.
However, the earnings in apparel shipment were based on value as raw materials prices were high, it was not as quantity growth, he added.
BGMEA Director Mohiuddin Rubel said that the RMG export couldn't meet the monthly target of $4.05 billion in March.
“Given the current situation, it was supposed to happen as the stagnation of the global economy caused by the war has curtailed the purchasing power of consumers,” he added.
He also said that due to the hike in the cost of the raw materials, the export value has increased.
“Our CM is reduced based on the demand of buyers. We have to face challenges throughout 2023. However, we have the issue of wages and bonuses this month. Considering the overall situation, we have to move cautiously,” he added.
However, experts and economists said that except for the RMG and leather industries, major sectors saw negative growth.
Moreover, the growth of the export earnings was input-driven, meaning due to the hike in the price of the raw materials, the export earnings rose.
There was no sufficient value addition. For this, it won't bring much good news for the reserve, the experts said.
Bangladesh has to diversify its export basket as well as market and creating a regional market will also help, the experts added.
Bangladesh bagged $52.08 billion through exports in 2021-22FY, registering a 34.38% year-on-year growth.