Export earnings post 38% growth

Coupled with the strong recovery of the apparel shipment, Bangladesh’s exports rose by 38 per cent to $4.16 billion, the highest ever in a single month, in September.

According to the Export Promotion Bureau (EPB) data, Bangladesh exports in September recorded a 37.99 per growth to $4.16 billion, which was $3.01 billion in the same period of last year.

In September, apparel exports rose by 41.66 per cent to $3.41 billion, which was $2.41 billion last year.

Meanwhile, during July-September period of the current fiscal year 2021-22, Bangladesh earned $11.02 billion, which was 11.37 per cent higher compared to $9.9 billion in the same period of last year.

Of the total exports, $9.05 billion or 82.20 per cent came from apparel exports, which was $8.12 billion in the same period a year ago. Out of $9.05 billion, knitwear products fetched $5.16 billion, up by 11.48 per cent compared to $4.46 billion in the same period of last year.

Meanwhile, woven products earned $3.9 billion, up by 15.69 per cent, which was $3.66 billion a year ago.

Push factors for the sharp rise

Economic recovery in major exports destinations, especially in US and some of the EU countries, and rise in unit prices worked as a catalyst for Bangladesh in pushing up the exports earnings.

“Prices of raw materials including accessories and fabrics and charge of freight increased sharply, coupled with the rise in raw material price, unit prices of clothing products rose,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan told The Business Post.

“Following the ease of the Covid-19 situation, global retailers placed more work orders.”

On top of that, buyer’s confidence in Bangladesh was boosted with the timely delivery of goods. This was because of government support in running factories amid the pandemic, where exporters had to comply with safety guidelines to ensure workers safety, said the business leader.

Though the total exports increased, the profit margin, however, did not follow the growth as the cost of production went up caused by soaring prices of raw materials, said Hassan.

Meanwhile, economists highlighted the economic recovery and switching of work orders from work our competing countries.

“Global economic recovery especially in US, the single largest export destination of Bangladesh, has created the demand for clothing products. To cater the demands, buyers placed more work orders,” Zahid Hussain, a former lead economist of World Bank, Bangladesh the Business Post.

Bangladesh also benefited from relocation of work orders from Myanmar, which is now under military rule and has been put under global sanctions, said the economist.

At the same time, the Covid-19 situation worsened in Vietnam and Cambodia which compelled them to follow strict health safety guidelines, he added.

Export performance of other major sectors

During July-September period of FY22, jute and jute goods recorded a 31 per cent decline to $212 million against $308 million in the same period last year.

Leather and goods earnings showed positive growth by 20.52 per cent to $271.34 million, which was $225 million in the same period last year.

Among other major sectors, agricultural products have posted a 26.9 per cent positive growth to $345 against $271 million previously.

Export earnings from the pharmaceuticals sector rose by 33 per cent to $56 million, while plastic goods grew by 17.5 per cent to $31 million.

The specialized textile sector saw 29 per cent growth in the positive to $38 million, which was $30 million in the same period last year. Home Textile exports rose by 10.65 per cent to $279 million.

Meanwhile, exports of frozen and live fish increased by 15.96 per cent to $153 million, which was $132 million in the same period last year.