Exports earn record $5 billion in a month

For the first time ever, Bangladesh has exported $5 billion worth of goods in one month braving a global economic crisis and record high inflation in most of the export destination countries.

According to the latest Export Promotion Bureau (EPB) data, the historic feat was achieved in November — amid the country’s foreign exchange reserve crisis and following dwindling export earnings since September.

EPB data showed that the country exported $5.09 billion worth of goods last month with 26.01 per cent growth year-on-year. It is also 17.07 per cent higher than the Commerce Ministry’s November export target of $4.35 billion.

In November 2021, Bangladesh earned $4.04 billion through exports.

In the first five months (July-November) of the ongoing FY2022-23, the country saw 10.89 per cent export growth by exporting goods worth $21.95 billion. The amount was $19.79 billion in the same period of FY2021-22.

“It’s definitely good news for us. For the first time, we earned over $5 billion from the exports sector in a single month,” EPB Vice-Chairman and CEO AHM Ahsan told The Business Post.

“Product diversification, approaching non-traditional markets and shipping of the deferred goods to the buyers have helped us reach this milestone,” he said.

Apparel still on top

EPB data showed that the apparel sector’s contribution in exporting goods worth $5.09 billion was 86.05 per cent. This sector alone earned $4.38 billion in November, which is 35.60 per cent higher than $3.23 billion earned in the same month last year.

Between July and November this year, the apparel sector has earned $18.33 billion, marking 15.61 per cent growth rate year-on-year. It was also 4.36 per cent higher than the $17.57 billion export target.

The sector had earned $15.86 billion in the same period in 2021.

Meanwhile, at the same period in FY23, the knitwear sector earned $10.11 billion marking 12.55 per cent year-on-year growth while the woven sector earned $8.22 billion posting 19.61 per cent growth rate.

According to EPB sources, the apparel sector usually performs well in the US and European markets but recently it has shown tremendous export growth in the non-traditional markets — especially in Japan, South Korea, Australia and India.

However, Bangladeshi exports are yet to perform well at another emerging market, Russia.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan told The Business Post, “We failed to perform well in the last three months because of the global economic crisis.

“But since last year, we have been focusing on product diversification and non-traditional markets to enhance exports and we have started reaping the benefits.”

Besides, he added, exporters managed to send a large number of shipments, which the buyers had deferred earlier, last month. “This helped us achieve this feat.” EPB data also showed that in the first five months of FY23, leather and leather goods sector earned $537 million, posting 17.65 per cent year-on-year growth. The amount was $457 million in the same period of FY22.

The negatives

However, three other major sectors — home textile, jute and engineering — failed to retain the export growth between July and November.

EPB data showed that jute sector earnings dropped by 11 per cent to $406 million in these five months. The sector earned $457 million during the same period in FY22.

The home textile sector earnings dropped by 7.98 per cent to $519 million during this period, compared to $564 million earned in July-November of FY22. At the same time, the engineering sector’s export earnings dropped by 44.28 per cent to $218 million. The amount was $392 million in the same period of FY22.

Earnings from frozen and live fish exports also dropped by 27.39 per cent to $208 million while agriculture product earnings fell by 22.92 per cent to $429 million between July and November, compared year-on-year.