Bangladesh's apparel exports experienced significant growth in the European markets during the fiscal year 2022-23, defying the economic slowdown caused by the Russia-Ukraine conflict. According to the Export Promotion Bureau (EPB), apparel exports to European Union countries increased by 9.93% year-on-year, reaching approximately $23.52 billion, compared to $21.40 billion in FY22.
Furthermore, the United Kingdom market witnessed a remarkable 11.78% year-on-year growth, exceeding $5 billion in FY23, compared to $4.50 billion in the previous fiscal year. Exporters attributed this growth to increased exports of high-value products, as well as rising costs of raw materials and freight.
While non-traditional markets also performed well in the wake of the Covid-19 pandemic, the overall volume of apparel exports remained low compared to the previous year. In FY23, Bangladesh's apparel exports to non-traditional markets surged by 31.38% to $8.37 billion, accounting for 17.82% of total apparel shipments.
However, the United States and Germany, two major markets, experienced declines of 6.81% and 5.51% respectively. Apparel shipments to the US reached $8.51 billion, while those to Germany amounted to $6.68 billion. On the other hand, exports to Canada increased by 16.55% to $1.54 billion. The EPB data also revealed notable growth in apparel exports to Japan (45.62%), Australia (42.48%), India (41.58%), South Korea (22.45%), and China (30.32%).
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, emphasized the importance of diversifying apparel goods and sought government policy support in this regard.
Despite the positive growth, industry representatives, including Shahidullah Azim, vice president of a trade association, expressed concerns over potential declines in future months.
Factors such as low order volumes, factory capacity constraints, increased production costs due to utility price hikes, and order cancellations or discounts from buyers contribute to the uncertain outlook for Bangladesh's apparel exports. In FY23, Bangladesh's overall apparel export rose by 10.27% year-on-year to $46.99 billion, accounting for 84.59% of the country's total export earnings of $55.55 billion, according to EPB data.
