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Bangladesh’s export earnings fluctuated in 2022 because of the ongoing global economic and political crises, but the figure still rose by 25.46 per cent to $49.32 billion in the first 11 months year-on-year, according to the Export Promotion Bureau (EPB).
The December data is yet to be published, but the authorities expect the country will be able to retrain growth in the month as well.
The EPB data showed the country started the year with tremendous export performance, but growth fell around halfway, resulting in negative earnings. However, exports turned around in November, with earnings reaching a record.
Exports are yet to fully recover due to the global crises. Except for apparel as well as leather and leather goods, every major sector is still witnessing negative earnings.
Industry insiders said exports would not be stable before next April-May even if the global crises do not prolong.
The EPB data showed the country posted 41.13 per cent year-on-year export growth in January with $4.85 billion in earnings.
Earnings were $4.29 billion in February with 41.13 per cent growth, $4.76 billion in March with 54.82 per cent growth, $4.74 billion in April with 51.18 per cent growth, $3.83 billion in May with 23.24 per cent growth, $4.91 billion in June with 37.19 per cent growth, $3.98 billion in July with 14.72 per cent growth, and $4.61 billion in August with 36.18 per cent growth.
In September and October, earnings slipped by 6.25 per cent and 7.85 per cent respectively year-on-year. Bangladesh earned $3.9 billion and $4.36 billion in September and October respectively.
In November, however, the country witnessed record ever export earnings of $5.09 billion, registering 26.01 per cent growth.
Apparel retains growth
In the January-November period of this year, the apparel sector earned $41.04 billion, posting 29.2 per cent year-on-year growth, according to the EPB.
The sector started the year with 42.71 per cent year-on-year export growth, which helped it earn $4.08 billion in January.
It earned $3.51 billion in February with 33.77 per cent growth, $3.93 billion in March with 60.14 per cent growth, $3.93 billion in April with 56.31 per cent growth, $3.16 billion in May with 23.53 per cent growth, $4.09 billion in June with 41.35 per cent growth, $3.37 billion in July with 16.61 per cent growth, and $3.75 billion in August with 36.04 per cent growth.
But in September, the sector witnessed negative earnings, which dropped by 7.52 per cent to $3.16 billion.
In October, the clothing sector achieved 3.23 per cent growth and earnings rose to $3.68 billion. The following month, earnings were $4.38 billion with 35.36 per cent growth, with the figure reaching record ever. Industry insiders said their main export destinations – the European Union, the United Kingdom and the United States – are facing record high inflation, which has reduced their consumers’ purchasing power, and that is why buyers placed fewer orders in the last four months of the year.
Besides, due to the Russia-Ukraine war, exports to Russia almost stopped, which is an emerging market, they said.
Exporters are now focusing on the Asian and other non-traditional markets, such as India, Japan, South Korea, Brazil, and the Middle East, to increase export earnings, and the results have already arrived.
Bangladesh Garment Manufacturers and Exporters Association Vice-President Shahidullah Azim said, “Due to the Russia-Ukraine war, we failed to perform as per expectations. We posted negative growth in September while the December performance, as far as we are concerned, is not better either.”
“It is true that we achieved 29.2 per cent growth in the first 11 months of the year, but during this period, we exported many held-up goods, which was added to the calculation. It will take another two to three months to restore stability in apparel exports.”
Home textile earnings slip
The second largest export income sector, home textile, was able to see overall growth in the first 11 months. However, earnings dropped in the last five months.
The EPB data showed the sector’s earnings rose by 27.69 per cent to $1.47 billion in the January-November period year-on-year, but then dropped by 7.98 per cent to $519 million between June and November.
Sector insiders said earnings rose to nearly $2 billion in the first 11 months of this year. However, due to the ongoing crises, including high inflation, they lost the Russian market.
The ongoing gas crisis in Bangladesh, which cut manufacturers’ production capacity by up to 40 per cent, was also a reason behind the export drop. But earnings are likely to increase after March next year, exporters said.
“The US, our main export destination, is facing high inflation, and the European Union is witnessing the same problem, which has reduced our exports. But buyers will return with a good volume of orders after January,” Bangladesh Textile Mills Association President Mohammad Ali Khokon told The Business Post.
Leather posts 33.86% growth
Leather and leather goods, another major export earnings sector, showed excellent performance in the first 11 months, posting 33.86 per cent growth to $1.28 billion year-on-year. Thanks to the high earnings, rawhide prices in the domestic market also increased.
But due to the ongoing power and energy crisis as well as the Leather Working Group (LWG) certification issues, the sector failed to perform as expected, insiders said.
Tajin Leather Corporation Managing Director Ashikur Rahman said, “We are in a better position than in the past, but if we had LWG certificates, we would have been far better. The footwear sector is performing well, but due to the same issue, it could not use local leather.”
“Considering the progress, it will take at least another three years to get the certifications. Then we will be able to earn more,” he added.
Jute earnings dwindle
The jute and jute goods sector continued to see negative earnings after 2021, though it earned over $1 billion in 2020 despite the Covid-19 pandemic. The EPB data showed the sector’s earnings dropped by 11.92 per cent to $836.6 million in the January-November period of 2022 year-on-year. Sector insiders said due to high raw jute prices in the domestic market, goods prices have increased. But because of the global crises, consumers could not afford to pay additional prices, which is why buyers placed fewer orders.
“Now we are focusing on the Chinese and other Asian markets. Besides, the situation in our traditional markets is also improving. Earnings from the sector are likely to increase in the second quarter of the upcoming year,” Esrat Jahan Chowdhury, chief executive officer of Tulika Eco and director of the Bangladesh Jute Goods Exporters Association, said.
Primary commodity exports fall
The exports of frozen and live fish as well as agricultural products, which are considered primary commodities, fell, with the EPB data showing the sector earned $1.53 billion in the first 11 months of 2022, which was 0.4 per cent lower year-on-year.
