Robust exports in Aug

Bangladesh’s export earnings witnessed a robust 36.18 per cent growth to $4.61 billion this August, compared to $3.38 billion posted in the same month last year – a turbulent period for the global economy.

The figure recorded in August is the fourth highest in terms of value in the ongoing calendar year, and so far, Bangladesh’s monthly exports have crossed the $4 billion mark six times in 2022.

The country exported goods worth $8.59 billion in the first two months of FY23, showing a 25.31 per cent year-on-year growth. The figure is 4.52 per cent higher than the export target, show monthly provisional data released by the Export Promotion Bureau (EPB) on Sunday.

This achievement came at a moment when most export destination countries are facing high inflation and their consumers’ purchase capacity has been reduced due to the crisis.

In July this year, Bangladesh’s export earnings reached $3.98 billion, achieving a 14.72 per cent year-on-year growth.

Industry insiders, however, claimed that the goods orders – a key factor behind such high export earnings – were actually received three to five months ago. They added that the negative impacts of ongoing global economic crises will be prevalent after October this year.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem said, “The export sector is led by the readymade garment (RMG) industry, and we received a good number of orders four to five months ago.

“So, the export performance was excellent. But our export orders have significantly dropped after May and its impacts will be visible from October.”

 Who are the biggest earners?

The RMG sector earned $3.75 billion in August this year, which is 36.04 per cent higher compared to the same period previous year, and 81.31 per cent of the total export earnings. In August 2021, the sector earned $2.75 billion, according to the EPB.

In the first two months of FY23, the apparel sector earned $7.11 billion, which was 26.1 per cent higher compared to the same time previous year, and 7.24 per cent than the target.

During this period, the knitwear sector earned $3.92 billion, which is 20.15 per cent higher than the earnings posted in July-August of 2021, and 7.93 per cent higher than the export target.

On the other hand, woven sector earnings grew by 34.23 per cent to $3.2 billion, which was $2.38 billion in July-August of FY22. The government had fixed a $3 billion export target for this sector in the first two months of FY23.

The earnings of home textile – Bangladesh’s second highest export earners – grew by 100.09 per cent to $173 million this August, which was $82.7 million during the same time previous year. This sector’s earnings had risen by 53.39 per cent to $269 million in July-August of FY22.

Bangladesh Terry Towel and Linen Manufacturers and Exporters Association Chairman M Shahadat Hossain Sohel, “We are performing quite well in the Russian market, which helped us achieve big in terms of export earnings.

“When the Russia-Ukraine war started, many orders from Russia were postponed, but the buyers have since returned, creating new expectations.”

Leather and leather goods sector earnings rose by 47.07 per cent to $124 million this August, which was $84.19 million in the same period last year. Besides, the sector earned $223 million in the first two months of FY23, which was $174 million in the same period last FY.

Bangladesh Tanners Association General Secretary Md Sakhawat Hossain said, “We already navigated through the majority of the crises triggered by our relocation from Hazaribagh to Savar. This has helped us recover.

“If the Russia-Ukraine war does not become a prolonged affair, we will be able to achieve above $1.5 billion in export earnings in FY23.”

Jute and jute goods sector earnings rose by 38.57 per cent to $92.7 million in August this year, which was $66.9 million in the same period previous year.

The sector’s earnings rose by 22.67 per cent to $157 million in the first two months of FY23, though it was 13.67 per cent lower than the export target. The government fixed a $181.41 million export target for July-August of 2022.

Esrat Jahan Chowdhury, director of the Bangladesh Jute Goods Exporters Association, said, “We performed poorly in the first half of the previous FY, which is why our export growth is showing a positive growth. But if we compare the figure to the export target, we are far behind.

“It is true that we are performing better than the previous year, but our export orders declined due to the Russia-Ukraine war. So we do not know what is waiting in the coming days.”

In the first two months of the ongoing fiscal year, frozen and live fish export performance was down by 7.21 per cent to $81.63 million, which was $87.97 million in the same period of FY22.

Meanwhile, agriculture products exports have declined by 14 per cent to $178 million during this July-August period, which was $207 million when compared year-on-year.

Engineering products export earnings rose by 40 per cent to $99.89 million, however, it is 26.92 per cent below the export target.