Despite a 7.64 per cent Q-o-Q rise, Bangladesh's RMG exports declined by 2.8 per cent Y-o-Y to $9.51 billion in Q1, FY25. Demonstrating resilience, the sector maintained steady growth despite domestic political unrest, as per stakeholders.
Bangladesh had exported RMG worth $9.79 billion in the corresponding quarter of the previous fiscal, according to the latest report of Bangladesh Bank.
By Q1, FY25-end, Bangladesh’s export earnings from RMG sector increased to $9.51 billion from $8.83 billion in the preceding quarter, as per data by the Bangladesh Bank.
Accounting to71.2 per cent, the United States, Germany, and other key European markets contributed to $6,77 billion to Bangladesh’s total exports during the quarter.
Moreover, highlighting the sector's significant value addition despite global economic challenges, net RMG exports during the quarter amounted to $5.61 billion or 59.06 per cent of the gross figure.
Though since its emergence the Bangladesh RMG industry accounted for the lion's share of the country's export earnings, it continues to face challenges like concerns related to labour rights, workplace safety, and environmental sustainability.
Other drawbacks of the industry limited product and market diversity, lack of sufficient backward linkage industry, concentrated market, high lead time, lack of efficiency in producing high-value products, global geopolitical conflicts, energy price hikes, etc.
Nevertheless, the sector made a significant contribution of 7.87 per cent to Bangladesh's GDP in FY24. RMG export earnings in FY24 stood at $36.13 billion, indicating a low growth of 5.36 per cent compared to the previous fiscal year.
Export earnings from the leather and leather products industry accounted for 2.48 per cent, export earnings from jute products totaled 1.3 per cent while earnings from exports of other products accounted for 10.36 per cent of the total products.
In the apparel segment, export earnings form sub-sectors like woven sector accounted for 35.72 per cent whereas earnings from knitwear exports contributed 45.87 per cent.
Shams Mahmud, Managing Director, Shasha Denims and Former President, Dhaka Chamber of Commerce and Industry, said despite the recent unrest, the sector now remains stable and its future outlook remains bright.
