EU’s apparel imports from Bangladesh jump 43% in H1’22

The European Union’s (EU) apparel imports from Bangladesh increased by 43.38% to $13.15 billion during January-July period of 2022, ahead of winter. 

The block’s global apparel imports grew by 24.74% during the period even as it faces a looming recession caused by global economic instability due to the Russia-Ukraine war, according to the latest data published by the EU’s statistical office Eurostat. 

Industry insiders say the growth in EU imports is owed to pent-up demand being released after a Covid-19 lull. The surge is expected to prove highly beneficial for Bangladesh which is also witnessing economic strain with the International Monetary Policy recently decreasing the country’s growth forecast for the current fiscal year.

According to Eurostat data, EU’s overall apparel import from the world in the first six months of this year stood at $56.33 billion, indicating a massive growth for Bangladesh’s garment sector.

“So far the import figure of the EU shows a significant growth trend which is obviously caused by increased demand after the Covid-19 pandemic and increased raw material costs leading to unit price hike,” Md Mohiuddin Rubel, director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told The Business Post. 

The surge in EU’s import from Bangladesh has remained higher than the global average even in July. 

The region’s worldwide import grew by 22.7% in July, while import from Bangladesh grew around 37%, compared to last year.

EU apparel imports in other top garment exporting countries have also seen a rising trend during the January-July period of this year.

During the period, EU apparel imports from China saw a 23.52% year-on-year growth to $14.93 billion, while imports from Cambodia rose 41.50%, Pakistan 28.05%, Indonesia 30.86%, Vietnam 22.78%, and Morocco 16.67%.

However, the rising trend might lose pace as the global economy is feared to be heading towards a more turbulent situation next year due to the Russia-Ukraine war.

BGMEA’s Mohiuddin Rubel said, “Due to the recent geopolitical tension, retailers are struggling to adapt to an increasingly inflationary global market.

“The retail sales of many European brands have declined which increased their inventory stock. Given the challenges in the global economy, EU’s import may start slowing down in the final quarter of the year.”