The export of apparel items experienced moderate growth in the major destinations – both traditional and nontraditional markets – in the first two months (July-August) of the current financial year (FY24).
According to the country-wise detailed apparel export data of the Export Promotion Bureau (EPB), and compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported apparel items worth $7.99 billion, fetching a growth of 12.46%, from $7.11 billion in July-August of FY24.
During this period, Bangladesh exported clothing items worth $1.46 billion to the United States, which is the largest single export destination for Bangladesh. This marked a year-on-year growth of 2.95% compared to the $1.41 billion exported during the same period in the previous fiscal year (July-August of FY22).
After experiencing consecutive months of negative growth, exports to the US returned to a positive trajectory starting from July.
However, exports to Germany continued to experience a negative trend due to global economic turbulence and inflation. Bangladesh exported garments worth $993.98 million to Germany, which is the second-largest single export destination, reflecting a decline of 6.29% from the $1.06 billion recorded in July-August of FY23.
During this period, registering a 19.14% YoY growth, Bangladesh exported apparel goods worth $976.75 million to the UK, the third highest destination for the country's RMG products, up from last year’s $819.86 million, EPB data stated.
The apparel export to the other major destinations such as Spain, France, Netherlands, Italy and Poland also registered positive growth by 26.94% to $729.53 million, by 8.45% to $402.13 million, by 18.95% to $354.39 million, by 28.73% to $329.88 million, and by 26.37% to $293.00 million respectively.
During the mentioned period, the apparel export to the overall EU market soared by 11.81% to $3.84 billion from $3.44 billion in the same period of last fiscal year.
During July of FY 2022-23, exports to Canada reached $243.44 million by fetching a YoY growth of 7.22% from $227.03 million in July-August of the last fiscal year, EPB data showed.
In the context of Bangladesh's key export destinations, Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico and some other countries are known as non-traditional markets.
During the mentioned period, the apparel export to the non-traditional markets reached $1.47 billion with 21.94% year-over-year growth, from $1.20 billion in the last FY.
Among the major destinations of the non-traditional markets, exports to Japan reached $291.42 million, with a YoY growth of 33.97% from $217.53 million in the last fiscal year.
However, export earnings from India witnessed a negative growth in the first two months of FY24.
From India, Bangladesh bagged $182.37 million in the July-August period of FY24, registering a negative growth of 3.14% from $188.29 million in the last fiscal year.
Among the major destinations of the non-traditional markets, exports to Australia, South Korea, and Mexico increased by 49.52% to $224.89 million, by 19.51% to $118.90 million, and by 2.08% to $64.69 million, respectively, said the EPB data.
During the mentioned period, the overall apparel export of Bangladesh was $7.99 billion, fetching a growth of 12.46%, from $7.11 billion of July-August of FY23.
Talking to Dhaka Tribune, Mohiuddin Rubel, director of the BGMEA, said that in the current global economic climate, Bangladesh is doing well as usual.
“Our position in the non-traditional market has always been good, we are doing well there. In Europe, our biggest market, we are doing well there too while our growth in the US has fluctuated,” he added, saying that they are also doing well in Canada and the UK.
It cannot be said that there has been any big change right now because the market is not completely normal yet.
“Still there is a stagnation in the market with low demand. If the situation changes, then the market will turn around, then we will be better than everyone because we are ahead in all aspects of safety, infrastructure and buyers have confidence in us,” he added.
