In the first seven months of this year, spanning Jan-July’24, Bangladesh recorded a 4.84 per cent decline in apparel exports to the European Union (EU). Data from Eurostat, the statistical of the European Union shows, Bangladesh’s apparel exports to the EU declined to $11.11 billion during the period as against $11.68 billion reported during the same period in 2023. This decline is slightly better than the overall 5.22 per cent drop in the EU’s total apparel imports, which fell from $52.60 billion in 2023 to $49.85 billion in 2024.
Industry insiders expressed concerns that, despite Bangladesh faring better than some competitors, the reduction in exports highlights challenges in maintaining its competitive edge in the EU market. They pointed to factors such as rising utility costs, gas shortages, and wage increases, which have weakened Bangladesh’s position.
The broader decline in EU apparel imports from several countries indicates potential shifts in consumer demand and economic challenges within the apparel sector. For example, the EU’s apparel imports from China fell by 7.34 per cent to $12.34 billion as against $13.31 billion during the same period in 2023. Similarly, Turkey’s exports to the EU decreased by 8.55 per cent, to $5.89 billion in 2024 from $6.44 billion in 2023.
India also experienced a smaller decline in exports to the EU, with its readymade garment (RMG) exports falling by 1.93 per cent, reaching $2.96 billion, compared to $3.01 billion in the previous year. Meanwhile, Vietnam’s apparel exports to the EU in the first seven months of 2024 dropped by 5.07 per cent to $2.19 billion from $2.31 billion in 2023.
Contrary to this, apparel exports by Cambodia to the EU rose by 10.36 per cent to $2.03 billion, while Pakistan saw a 6.32 per cent increase, reaching $2.06 billion. Morocco also posted a 4.05 per cent growth in apparel exports to the EU increasing amounting to $1.73 billion.
Experts believe, such strong performances by Cambodia and Pakistan suggest a shift in EU sourcing preferences, underscoring the need for suppliers to adapt to changing market dynamics. In contrast, Sri Lanka’s apparel exports to the EU declined by 4.45 per cent, while Indonesia’s exports fell by 8.86 per cent.
