In July 2024, earnings from Bangladesh's apparel exports grew by 2.88 per cent to $3.18 billion compared to $3 billion in July 2023, as per data from the Bangladesh Bank.
Earnings from export of woven products increased by 3.9 per cent to $1.44 billion, while earnigs from knitwear exports rose by 2 per cent to $1.72 billion. Abdullah Hill Rakib, Acting President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), avers, this growth provides a promising start to the fiscal year. However, the recent labor unrest, which disrupted production for over 20 days in Savar and Ashulia, has led to a significant rise in production costs, he adds.
Echoeing Rakib’s concerns, Fazle Shamim Ehsan, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), notes, labor unrest and political instability are making buyers hesitant, potentially hindering work orders for the next season.
Describing the export growth in July as sluggish Khondkar Golam Moazzem, Research Director Center for Policy Dialogue, emphasises, the industry needs to step up efforts to meet annual targets. He attributes the current slowdown to global factors such as high inflation in the US and Europe, which have weakened consumer purchasing power and reduced demand. Domestic challenges, including the weak law and order situation and ongoing labour unrest, are also impacting production, Moazzam points out.
The industry needs to introduce a swift resolution to these issues, failing which it may not be able to achieve the targeted double-digit export growth, he warns.
