Bangladesh made $4.59 billion through exports in July, the first month of the fiscal year 2023-24 (FY24), fetching a 15.26% year-on-year growth, according to data released by the Export Promotion Bureau (EPB).
During the same period last year, Bangladesh earned $3.98 billion from export earnings.
Exports also experienced a growth of 2.5% from the target set at $4.48 billion for July of FY24 despite the global economic slowdown, lukewarm demand, and economic turmoil in Western destinations.
The readymade garment (RMG) sector, the highest earner of the export earnings, made $3.95 billion in July, fetching a Y-o-Y growth of 17.43%, which was $3.36 billion in the last FY23, the EPB data showed.
Among apparel products, knitwear registered a growth of 22.24% to $2.26 billion from $1.85 billion in the same period of the last financial year, while woven garments saw a growth of 11.54% to $1.68 billion from $1.51 billion, said the EPB data.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that despite the ongoing global economic crisis, significant growth in export earnings was encouraging them.
“We posted earnings growth because we ventured into high-value clothes manufacturing and buyers increased unit price for those goods, though export volume has now decreased,” he also said.
Moreover, though they are receiving less orders from the US, Germany and Poland, they are doing well in the non-traditional markets - Canada and the UK - which are also helping them.
He also said that if the government could ensure export-friendly policy support and quality gas and electricity supply at reasonable prices, they would be able to earn more in the coming months.
According to EPB data, apart from the RMG, major export-earning sectors also made positive growth in the first month of FY24.
Industry insiders said that thanks to excellent performance in the non-traditional markets and manufacturing high-value items, they were able to retain growth.
But the overall work order situation was unstable as buyers were facing difficulty in selling their products due to high inflation in the export destination countries, they remarked.
Among other major sectors, the leather and leather product sector earned $98.74 million in July FY24, which was 0.67% lower than $99.41 million in the same period of FY23.
After almost one and a half years, the jute and jute goods sector returned to positive trend in July this fiscal year and earned $65.67 million, 2.75% higher than $63.91 million in FY23, EPB data showed.
Syed Ali Alfe Sany Akash, director of the Bangladesh Jute Goods Exporters Association, said that they posted positive earnings last month because their earnings drastically slipped in July FY23.
“But overall export orders are unfavourable as our major export destinations - such as Turkey, Iran, and African countries - are experiencing US dollar scarcity. The situation will not improve before the global economic crisis is resolved,” he added.
Agricultural products registered a positive growth of 14.53% to $72.58 million, higher from $63.37 million in July of FY23.
Another promising sector, home textile, was still struggling in the export market.
The sector posted negative 40.77% growth in July FY24 to $56.83 million, which was $95.95 million in July of FY23.
According to the EPB, the non-leather footwear sector posted a 14.41% to $40 million in July this fiscal year, which was $35 million in July FY23.
Regarding the non-leather footwear export, Shoes Bangladesh Managing Director Rajib Ahamed said that buyers were shifting from China, which is creating a unique opportunity for Bangladesh.
“If the government provides adequate policy support for the sector, we will be able to retain export growth through footwear,” he added.
Bangladesh earned $55.55 billion in export earnings in FY23, posting a narrow 6.67% year-on-year growth.
