The imports of the apparel items from Bangladesh by the European Union (EU) countries declined by 20.65% in value to 17.38 billion euros in 2023 due to the global economic crisis.
In 2022, the EU, largest export destination of Bangladesh for its apparel items, imported apparel products worth 21.91 billion euros, according to the recent data published by the Eurostat, the statistical office of the EU.
In terms of quantity, Bangladesh’s RMG exports to the EU in 2023 also decreased by 16.53% to 11.14 billion kilograms, lower from 13.34 billion kilograms in 2022.
The Eurostat data showed that exports of both knitwear and woven wears to the EU in 2023 witnessed negative trends where the Knitwear subsector fetched 10.64 billion euros, down from 13.95 billion euro in 2022 and woven items earned 6.74 billion euros, against 7.95 billion euros in 2022.
Almost all of the major apparel suppliers to the EU faced negative growths due to the curtailed demands thanks to high inflation and economic turmoil emerged as the consequences of the ongoing Ukraine-Russia war.
The Eurostat data stated that the RMG imports by the EU from different countries in 2023 fell by 16.22% to 83.19 billion euros, which was 99.29 billion euros in 2022.
According to exporters, the global high inflation and rising interest rates reduced consumer demand, which led to a stockpile of products in the retail outlets of EU buyers and daunted them from placing fresh orders.
Moreover, they said that the official data from importing countries accurately represented Bangladesh’s actual work-order situation of 2023.
Among the major competitors of Bangladesh, the data showed that apparel imports by the EU from China in 2023 declined by 21.54% to 22.73 billion euros, which was 28.98 billion euros in 2022.
However, China remained as the top apparel exporter to the EU in terms of value but Bangladesh’s position remained unchanged as the highest RMG exporter in the market in 2023 in terms of volume. In 2022, Bangladesh emerged as the top apparel exporters to the EU in terms of volume.
China exported 11.10 billion kilograms of the RMG items in 2023.
Apparel imports of the EU from Turkey in 2023 also witnessed a negative growth of 13.23% to 9.93 billion euros, which was 11.45 billion euros in 2022.
India’s RMG exports to the EU in 2023 fell by 13.12% to 4.04 billion euros compared with those of 4.65 billion euros in 2022, the EU data stated.
Fetching a negative growth of 14.68%, Vietnam exported apparel items worth 3.78 billion euros in 2023, lower from 4.43 billion euros in 2022.
RMG exports of Cambodia to the EU in 2023 also declined by 13.38% to 3.20 billion euros compared with those of 3.70 billion euros in 2022, said the Eurostat data.
Pakistan exported apparel items worth 3.10 billion euros in 2023, which was 18.3% lower than 3.79 billion euros of 2022.
Talking to Dhaka Tribune, Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the fall in demand was caused by wars, which also increased interest rates and inflation, leading to an increase in the inventory.
Buyers placed reduced-rate work orders throughout the last year, he added.
Regarding top in exporting in terms of volume but second in terms of value, he said that the main issue is price.
“China, Vietnam export high-value and diversified products while Bangladesh mainly exports basic items. It pushed us to the second spot in terms of value. Moreover, fair price is still an issue,” he added.
In 2023, apparel imports by the US from Bangladesh also declined by 25.07% to $7.29 billion, from $9.72 billion in 2022.
However, overall RMG exports of Bangladesh in 2023 surged by 3.67% in 2023 to $47.39 billion, up from $45.71 billion in 2022, said the EPB data.
In this regard, Azim said that there might be a mismatch among the data of the EPB, NBR and Bangladesh Bank.
“We always urge them to be more careful in publishing data as it creates confusion for the buyers and other stakeholders,” he added.