• Friday, Mar 05, 2021
  • Last Update : 07:46 pm

Exports hitting the bumpy road

  • Published at 09:51 pm November 2nd, 2020
Export shipping container
Representative picture of export containersBigstock

Receipts down 6.5% in October

Overseas shipments raked in $2.9 billion in October, down about 6.5% from a year earlier, in what can be viewed as the harbinger of the cold, harsh winter that lies ahead for Bangladesh’s exports as a second wave of coronavirus cases sweep much of the Western world.

Last month’s receipts also missed its target by $190 million, according to data from the Export Promotion Bureau.

Garment, which fetches more than 84% of the export receipts, brought home $2.3 billion in October, down 8% year-on-year.

“This warns about faltering recovery in global demand and trade,” said Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association.

October’s earnings take the export receipts so far this fiscal year to $12.9 billion, up 1.6% year-on-year.

But the road ahead would definitely be bumpy given the second wave of cases in much of the Western world, the main destination of Bangladesh’s exports.

“It’s a matter of concern,” said Zahid Hussain, lead economist of the World Bank’s Dhaka office.

The bump in exports seen from June onwards was due to clearing the backlog as coronavirus brought most of the world to a standstill between March and April. There were some new orders too for Christmas, he said.

“But now, there is clearly a slowdown,” Hussain added.

New orders are just not gushing in, said Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh.

He expects the export receipts to go down further before picking up in April-May.

“Recovery won’t be quick. And this will have an impact on employment and GDP. The balance of payment won’t be hampered much as imports are not rising as fast,” Mansur added.

The question now is how long or how deep the second wave would be in the EU and the US, Hussain said.

“This is worrying for us since Europe is our major market,” Huq said.

And there is nothing much that can be done,Hussain said. 

Among other major sectors, jute and jute goods export soared 40.2% year-on-year in October to $131.2 million.

Shipment of leather and leather products, the third big export earner, slipped last month: it dropped 7 per cent to $58.1 million. Agricultural exports dropped 8% in October to $87.3 million.

Export earnings from the pharmaceuticals sector rose by 19.8% to $56 million between July and October.

Hussain said the government can now push for more pharmaceutical exports seeing that there is a well-established industry in Bangladesh.

60
Facebook 58
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail