Despite high inflation in the US and the EU markets, Bangladesh’s RMG exports to both regions surged during July to May of FY 2022-23. As per a Daily Industry report, the EU holds 50 per cent while the US holds 21 per cent share in Bangladesh exports. Both have witnessed a hike in commodity prices due to the Russia-Ukraine conflict. In the US market, the consumer price index (CPI) increased to 8.3 per cent year-over-year in April this year. While annual inflation in the EU grew to 8.1 per cent in May 2022, according to EuroStat, the statistical office of the European Union,
Despite this, the unit price of Bangladesh’s apparel increased 6.5 per cent in the US and 10.7 per cent in the EU market. Data from the United States International Trade Commission (USITC) also showed, average garment unit price rose 6.5 per cent to $3.3 for the US market during the July-May period of FY 2022-23. In the EU, garment prices for brands increased 10.7 per cent, shows data from the Eurostar.
As per the data of USITC and EuroStat, Bangladesh’s garment export volumes have also witnessed a significant rise in the two major markets helping achieve an excellent growth rate.
Bangladesh RMG export volume to the US market grew by 36.5 per cent to $1.89 billion during the period. Its knitwear exports grew by 40.2 per cent and woven garments exports increased by 31.2 per cent.
During the July-May of FY 2022-23 period, local RMG exporters received on average $2.1 per unit of knitwear garment in the US market. While woven products got on average $5.2.
In the EU market, knitwear clothes prices grew by 13.2 per cent to €13.4 per kg. And woven products’ price grew by 7.1 per cent to €15.4 per kg in the July-March of FY22.