A vital engine of its economy, the Bangladesh garment industry faced mixed fortunes in the first half of the current financial year. While exports to established markets like the European Union and the US dipped due to economic slowdown, the sector saw encouraging growth in newer destinations.

Garment exports to EU, Bangladesh's largest customer, declined by 1.24 per cent, reflecting the impact of high inflation on consumer spending. Exports to the region’s single biggest market, the US also declined 5.69 per cent due to overall slowdown in the American economy.

However, amidst these challenges, Bangladesh found promising opportunities in non-traditional markets. Exports to Japan, Australia, UAE, South Korea, and Saudi Arabia grew in the range of 9.98 per cent to 40.62 per cent. This helped mitigate the impact of the slowdown in traditional markets and kept Bangladesh's overall export growth positive.

Industry leaders believe that with inflation starting to ease and the gains made in new markets, Bangladesh’s garment exports may rebound in the second half of FY24. However, concerns about the Red Sea crisis and rising freight costs persist.

Bangladesh's garment industry is navigating a complex global economic landscape. 

While challenges in traditional markets remain, the sector's adaptability and focus on new markets offer reasons for optimism. The coming months will be crucial in determining the industry's trajectory, with the hope that the resilience and diversification shown so far will pave the way for continued success.