Home ›› 04 Jun 2022 ›› Editorial
According to a report published in The Business Post on Friday, the export growth of Bangladesh slowed to 23.24 per cent in May as buyers are reportedly placing fewer orders. According to the Export Promotion Bureau, EPB, the country’s earning was $ 3.83 billion in May while in the same period in FY 21, it was $ 3.10 billion. Bangladesh earned $47.17 billion during the July-May period of FY2021-22, up by 34 per cent from $35.18 billion in the same period of FY21.
Predictably, the largest contributor to the national exports, RMG, earned the highest ever standing at $ 38.52 billion during July-May of FY22, up by 34.87 per cent from $ 28.56 billion for the same period in the last fiscal. Exports in the jute sector also showed a slight fall, with earnings standing at $ 1.05 billion in the fiscal year 2022 compared to $ 1. 08 billion in the last fiscal.
However, raw jute export earnings rose by 50.97 per cent to $191 million, and leather and leather goods posted a 31.85 per cent growth to $1.11 billion, which was $846 million in the same period in FY21.
Sectors that recorded growth also include agro products, pharmaceuticals, and frozen fish.
The overall picture is not grim at all because the world has just come out of a two-year slump induced by the Covid-19 pandemic. Bangladesh is fortunate to have disproved the rather bleak prognosis made at the outset of the pandemic and is one of the few countries which has come out of the calamity to go back into full-blown operation.
But the world, grappling to pick up the pieces after a two-year battle with the raging virus, is now faced with a conflict in Europe that has carved a stark division among developed nations.
The Ukraine war at the heels of the Covid-19 pandemic has only compounded a global economic malaise, triggering record inflation in USA and Europe.
At this juncture, the war that seems to be heading towards a prolonged conflict will have far-reaching repercussions for the whole world since we now live in a globalized setting where one calamity can create ripples everywhere.
The Ukraine conflict is now beginning to manifest in a series of catastrophes ranging from economic meltdowns of nations to supply chain disruptions to the adoption of austerity measures by almost all nations.
It’s widely accepted that the upheaval in Sri Lanka began with the rising price of fuel, food, and medicine is a result of the war in Europe.
When the conflict began, a swift end was predicted by many, although more than three months later, it appears that the confrontation on the ground will go on longer while negotiations at the diplomatic table will see plenty of wrangling.
Against such a scenario, it’s only natural that growth everywhere will lose pace, and Bangladesh is no exception.
However, despite the slowdown, we have many reasons to feel optimistic as the war’s direct impact on our socio-economic activities is limited.
The export growth rate may have decelerated, but it hasn’t stalled. A dip in export orders is natural, and all components of the RMG industry will have to ride out this storm with a strategy to seek out new markets in Africa and South America.
In the fiscal year 2022, furniture exports from Bangladesh posted a 37.52 per cent rise to $101.50 million, compared to $74 million in the same period of FY21. This is not only an encouraging sign but a sparkling example of how this country is diversifying the export basket.
Bicycle exports also recorded a 30.20 per cent rise to $157 million against last year’s $120 million.
Therefore, for Bangladesh, what is needed is a cautious approach coupled with an attitude to make the best of the current situation.
