Bangladesh's apparel exports to key markets; the US and Europe, increased significantly in the first seven months of this fiscal year, spanning July-January’ 24-25. As per data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the country’s shipments to the European Union increased by 13.91 per cent Y-o-Y to $11.81 billion while exports to its largest garment market, the US expanded by 16.45 per cent to $4.47 billion during the same period.
This rise in exports also led to an expansion in the EU's share in Bangladesh's garment exports to 50.15 per cent from 49.31 per cent last year. The US’ share also rose to 18.99 per cent from 18.27 per cent.
Industry experts attribute this growth to the improving economies of the US and Europe, leading to increased orders. Despite a global decline in apparel consumption last fiscal year and reduced imports by both the US and Europe, the current rebound is driving demand, they say.
Within the EU, exports to Germany grew by 13.47 per cent Y-o-Y while exports to the UK increased by 4.55 per cent to 10.83 per cent of total shipments.
Driven by an increased demand from Japan and Australia, garment exports to non-traditional markets increased by 6.42 per cent. However, exports to Russia, South Korea, China, the UAE, and Malaysia declined.
Industry insiders believe, US-China trade tensions contributed to the shift in orders from China to Bangladesh. Improved law and order within Bangladesh also played a positive role. Looking ahead, Bangladesh needs to manage worker payments during upcoming Eid festivals besides ensuring a stable energy supply to maintain this export momentum.
Experts opine, ongoing global trade tensions present both challenges and opportunities for Bangladesh. The country needs to expand its production capacity to capitalize on these opportunities. Besides, it also needs invest in backward linkages to support and enhance the competitiveness and growth potential of the Ready-Made Garment (RMG) sector, they add.
