Bangladesh witnessed a 0.99 per cent year-on-year negative export growth this April, a phenomenon recorded in three single months this fiscal so far, amid a persistent shortage of forex reserves.
According to Export Promotion Bureau (EPB) monthly provisional data published on Thursday, the country earned $3.92 billion from merchandise exports in April this year, which is 0.99 per cent lower compared to the same month last year.
Moreover, the amount is 16.78 per cent lower than the commerce ministry’s $4.71 billion export target for this month.
In October and November this FY, the export sector witnessed 13.64 per cent and 6.05 per cent year-on-year negative export earnings, and earned $3.76 and $4.78 billion respectively.
In the first ten months of FY24, the country posted 3.93 per cent year-on-year export growth, and earned $47.47 billion. This figure was $45.68 billion in the same period last FY, and 6.87 per cent lower than the commerce ministry’s $50.97 billion target.
Industry insiders said the country celebrated Eid-ul-Fitr in April, and the factories enjoyed up to 10 days of holiday. That is why the factories received fewer orders in this month, and shipped a minimum amount of goods compared to regular months.
For this reason, the merchandise exports have dipped, and businesses said this is nothing unusual for the country.
Speaking to The Business Post, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former president Faruque Hassan said, “In the month of Eid, production in factories usually goes down as workers enjoy long holidays.
“But the overall export order volume of RMG products is not bad, and I think the earnings will turn around this May.”
Faruque, also a director of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), added, “Export performance on non-RMG is very poor from the last two fiscal years, and the government should focus on this area.
“We have to understand that Bangladesh will graduate from least developed country (LDC) status in 2026, and after this, the country will face many obstacles. To tackle this, we have to make significant preparations, and product diversification is one of the key solutions.”
Apparel earnings dropped 1.01%
According to the EPB data, the apparel sector earned $3.29 billion through exports this April, which is 1.01 per cent lower compared to the figure posted in the same month last FY. In April FY23, the sector earned nearly $3.32 billion.
The sector, Bangladesh’s key export earner, however, posted just 4.97 per cent year-on-year growth in the first ten months of FY24, and the growth was 5.53 per cent year-on-year in the first nine months of this fiscal year.
In the July-April period of FY24, the readymade garment sector earned $40.49 billion, and the amount was $38.58 billion in the same period of last FY.
In the first ten months of this FY, the knitwear sector earned $22.88 billion through exports with 9.11 per cent year-on-year growth. The woven sector, however, posted just 0.03 per cent year-on-year growth during this period, and earned $17.62 billion.
After a depressive October-December quarter in FY24 in terms of export growth, the RMG sector got back to the positive growth, which continued in the January-March quarter. But the sector witnessed negative export earnings growth again in the first month of last quarter of FY24.
Industry insiders said although the RMG sector witnessed negative earnings for four individual single months of this FY, it will be able to retain positive growth in FY24, as the current order flow is good.
BGMEA Senior Vice President Khandoker Rafiqul Islam said, “We are currently receiving good orders, but rates are still tight. Hopefully, the overall year-on-year export growth this FY will remain positive.”
Non-RMG still negative
Among other notable sectors, leather and leather goods experienced a negative growth of 13.32 per cent to $872.45 million, which was $1 billion in the first ten months of FY24.
A once promising sector, the home textile, marked an unceasing negative growth of 25.32 per cent to $702.56 million, down from $940.8 million year-on-year.
In the July-April period of FY24, export earnings from the agricultural products, however, saw a positive growth of 6.12 per cent to $774.49 million, higher from $729.8 million in the same period last fiscal year.
Export receipts from jute and jute goods again experienced a negative growth of 7.05 per cent to $716.44 million, down from $770.82 million in July-April of FY23, as per EPB data.
Another potential export sector, engineering products, again fetched a negative growth of 0.4 per cent to $436.35 million, down from $438.11 million in the same period last FY.
