Bangladesh started fiscal year 2023-24 with 15.26 per cent year-on-year export growth in July despite the ongoing global economic crisis, riding on apparel items that contributed 86.08 per cent to the total earnings.
According to Export Promotion Bureau (EPB) provisional data published on August 2, the country earned $4.59 billion last month, compared to $3.98 billion recorded in July FY23. The commerce ministry had set target $4.48 billion earnings from the export sector in July this FY.
In July of FY24, almost all major export sectors returned to the positive earnings trend. However, the leather and leather goods and home textile sectors are still in the negative trend.
Exporters say thanks to the recent excellence performance in non-traditional markets and manufacturing of high-value items, they were able to retain the growth.
But the overall work order situation remains unstable, as buyers continue to face a crisis of sales due to high inflation in export destination countries.
Apparel sector
EPB data shows that the readymade garment (RMG) sector, the leading earnings basket for Bangladesh, posted a 17.43 per cent year-on-year growth to $3.95 billion in July FY23. The figure was 4.65 per cent higher than the commerce ministry’s $3.78 billion export target.
During these months, the knitwear sector posted a 22.24 per cent year-on-year growth and earned $2.26 billion. Meanwhile, the woven sector earned $1.69 billion, which is 11.54 per cent higher than the same period of FY23.
In July last FY, the country earned $1.85 billion and $1.51 billion from knitwear and woven sectors respectively.
Speaking to The Business Post, The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said, “Significant growth in export earnings, despite the ongoing global economic crisis, is very encouraging for us.
“We were able to achieve this feat because we entered into high-value clothes manufacturing, which in turn caused buyers to increase unit prices for goods, despite a decrease in export volume.”
He added, “Though we are now receiving less orders from the US, Germany and Poland, we are doing well in non-traditional markets, Canada and the UK. This is helping us to tackle the crisis.”
“If the government ensures export-friendly policy support and quality gas and electricity supply with reasonable prices, we will be able to earn even more in the coming months.”
Leather and leather goods
Though Bangladesh was able to retain export growth till April FY23, the country witnessed negative growth for the following three months. The sector witnessed 1.74 per cent negative growth to $1.22 billion year-on-year in the last FY.
EPB data shows that Bangladesh earned $99 million from the sector in July FY24, which is 0.67 per cent lower than the same period of FY23.
During this period, $7.55 million earnings came from leather exports, $30.61 million from leather products and $60.59 million from leather footwear.
These figures were $13 million, $25 million and $61 million in July FY23 respectively.
Jute and jute goods
After almost one and half year, the jute and jute goods sector returned to the positive trend in July this fiscal year, earning $65.67 million. This figure was however 10.92 per cent lower than the export target.
In July last FY, the sector earned $63.91 million, according to EPB data.
In the last month, $18.24 million export earnings came from raw jute, $35.68 million from jute yarn, and $5 million from jute bags and sacks. These figures were $16.78 million, $33.96 million and $7.32 million in July FY23 respectively.
On the matter, Monami Impex Executive Director Syed Ali Alfe Sany Akash said, “We posted positive earnings in the last month because our earnings drastically slipped in July of FY23. The overall volume of export orders is still bad in major export destinations.”
This is because Turkey, Iran, and African countries are facing a USD shortage. The ongoing situation will not improve unless the global economic crisis is resolved, said Akash, also the director of Bangladesh Jute Goods Exporters Association.
Home textile
Home textile, another promising sector, is still struggling in the export market.
The sector posted 32.47 per cent to $1.09 billion year-on-year negative earnings in the last FY. In July this FY, earnings from the home textile sector again dropped by 40.77 per cent to $56.83 million year-on-year.
This figure was $96 million in July FY23, and the commerce ministry had set a target of $89.26 million for the sector for July FY24.
Non-leather footwear
According to EPB data, the non-leather footwear sector posted a 14.41 per cent growth to $40 million in July this fiscal year. This figure was $35 million in July FY23, and the commerce ministry had set a target of $39.75 million earnings in July this FY.
Shoes Bangladesh Managing Director Rajib Ahamed said, “Buyers are shifting from China, which is creating opportunity for Bangladesh. If the government provides us with appropriate policy support for the sector, we will be able to retain this export growth.”
