April export earnings dip 16.5%

Bangladesh’s export earnings fell by 16.52 per cent to $3.95 billion in April when compared year-on-year, a ripple effect triggered by a 15.48 per cent dip in readymade garment sector export earnings – recorded during the same month.

The country’s export earnings had reached $4.74 billion in April last year.

However, overall export earnings in the first 10 months of FY23 rose by 5.38 per cent to $45.67 billion, compared to $43.34 billion recorded during the same period last year, show Export Promotion Bureau (EPB) data.

This April, apparel product export earnings declined to $3.32 billion, compared to $3.9 billion recorded during the same month previous year.

But when considering the July-April period of FY23, exports from the RMG sector grew by 9.09 per cent to $38.57 billion, which was $35.36 billion in the same period of FY22. Of the figure, $20.96 billion came from knitwear, and $17.60 billion from woven products.

Experts and industry insiders blamed the year-on-year dip in April to slower demands of apparel products in global markets, and holidays on the occasion of Eid-ul-Fitr.

Apparel workers enjoyed around 10 days of Eid holidays, while delivery and shipment were slow due to government holidays in ports and other related offices.

Speaking to The Business Post, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan said, “Export orders have dropped due to the economic crisis, triggered mainly by ongoing Russia-Ukraine war.

“We were currently facing a fall in export earnings. As a result of slower work orders, the exports earning started to decline since March and continued in April also.”

He added, “We were trying to retain the growth by exploring the new markets, and exports of value added items. But ultimately, the flow of work orders has declined in such way that we cannot but record negative growth.

“On the other hand, the Eid holidays also cast shadow on exports as the month had less working days compared to other months.”

BGMEA Director Mohiuddin Rubel said, “With the ongoing economic and declining demands, holidays on the occasion of Eid-ul-Fitr have expedited the downward trend in exports earnings.”

Commenting on the issue, Research and Policy Integration for Development (RAPID) Chairman Abdur Razzak said, “Bangladesh has achieved $4.7 billion export earnings in a few months.

“Since earnings were very high in April last year, we should not expect too much growth in same month this year, as the Western nations are undergoing a recession.”

He continued, “The rising interest rates and inflation have increased the Western consumers’ living costs. When energy and food prices soared, spending on clothing is gradually dropped. This is a common trend, and it has had a major impact on our exports.

“But the negative growth is somewhat shocking in April. The situation will not improve much in the coming days, unless the Russia-Ukraine war and interest rates decline. But we have no choice but to focus on export diversification and increasing competitiveness.”

Meanwhile, exports earnings from frozen and live fish declined by 19.87 per cent to $371 million, followed by agriculture products 28.81 per cent to $741 million. Leather and leather goods earned $1 billion against $1.17 billion of the previous year.

Leather products posted 18.23 per cent positive growth to $323 million, while leather footwear earned $580 million with a 4.38 negative growth.

Home textile recorded 29.34 per cent negative growth to $941 million, which was $1.13 billion in the same period of last year. Jute and jute goods earnings fell by 20.25 per cent to $771 million.