The readymade garment export growth plunged sharply in April compared to the previous three months, which the exporters said was an aftershock of the political unrest.
The garment exports grew 1.16% to $1.93bn in the same month from one year ago while January, February and March saw growths of 7.98%, 7.22% and 8.40% respectively.
According to the provisional data of Export Promotion Bureau, the overall export earnings in April also declined by 0.53% to $2.39bn.
“January was the booking time, but the manufacturers failed to attract buyers and capture orders due to the political unrest, which is reflected in the export earnings of April, Exporters Association of Bangladesh (EAB) president Abdus Salam Murshedy told the Dhaka Tribune.
The July-April data showed the country earned $20.56bn by exporting clothes, which is 2.98% higher compared to the same period in the last financial year.
The overall export earnings grew by 2.63% to $25.3bn in the first 10 months of FY2014-15, which was $24.65bn in the same period of the last fiscal year.
“The exchange rate, particularly the devaluation of the Euro against the dollar, might have cast an impact on the export earnings (in April),” Khondaker Golam Moazzem, additional research director of the Centre for Policy Dialogue told the Dhaka Tribune.
Export earnings of April reflected the orders of January, which was to some extent barred due to the weeks-long political unrest, and if it is the impact of the unrest, export earnings may see a further slow-down in the upcoming months, he added.
Abdus Salam Murshedy said price competitiveness is another factor that acted as a catalyst for the slow-down. Due to compliance and a new wage structure, Bangladesh lost its competitiveness to its competitors, he added.
As per the provisional data, the woven sector earned $10.55bn, which was 3.85% higher compared to the same period last year, while knitwear earned over $10.05bn posting 2.7% growth.
Bangladesh has set an export target of $33.2bn this fiscal year, while last year’s export earnings amounted to $30.18bn.
The government also has set the export target for over $26.89 bn for the apparel sector, which employed over 4.4m workers, mostly rural women.
