50 Star US Inc.
Bangladesh Garment Manufacturers and Exporters Association, or BGMEA, has noted that the country's exports of clothing to nations in the European Union have dropped by 1.24 percent in the first half of the current fiscal year. In the meantime, the US plummeted by 5.69 percent.
According to the Export Promotion Bureau's (EPB) data, apparel worth $11.36 billion has been exported from Bangladesh to the EU market in the last six months (July through December). During the same period of the previous fiscal year, this amount was $11.5 billion.
Based on figures from the EPB, exports decreased by 17.05 percent in Germany, 3.89 percent in Italy, and 4.88 percent in Belgium during the first half of the fiscal year. This affects the export as a whole. Since Germany is one of the biggest markets for clothing made in Bangladesh, all things considered. In the last half of the year, Germany received $2.86 billion worth of apparel exports, down from $3.45 billion in the previous fiscal year.
Nonetheless, clothing exports increased by 2.15 percent to $1.45 billion in France and 6.56 percent to $1.82 billion in Spain during the first half of the fiscal year, according to EPB data. Poland and the Netherlands are also seeing increases in apparel exports of 19.14% and 9.11%, respectively. Over the same time frame, garment exports worth $2.71 billion were made to the United Kingdom, a 13 percent increase in exports.
However, one of Bangladesh's biggest garment customers, the United States, received $4.04 billion worth of Bangladeshi apparel exports in the first half of FY 2023–2024. The export is 5.69 percent lower than it was during the same time in the previous fiscal year, 2022–2023”. In the final quarter of the previous fiscal year, garment exports totaled $4.28 billion.
Canada, a country in North America, saw a 4.16 percent decline in apparel exports. Apparel exports totaled $740 million in the final half of the year, compared to $770 million in the previous fiscal year.
Even though the markets in America and Europe were struggling, there is still potential in the non-traditional sector. From $4.04 billion in the first half of the previous fiscal year to $4.54 billion now, garment exports in this market have climbed by 12.28 percent.
Out of this, exports grew in South Korea by 19.06 percent, Australia by 24.67 percent, and Japan by 9.98 percent. On the other hand, exports to India fell by 17.27%.
According to garment exporters, inflation has surged in several European nations, including the US, since the commencement of the conflict between Russia and Ukraine. As a result, people buy fewer goods overall than necessities like gasoline. Orders for clothing exports consequently keep going down. However, the nations that import clothing have used a variety of strategies, such as raising policy interest rates, to control inflation to a manageable level. Thus, a rise in exports is possible in the upcoming months.
Nevertheless, as the crisis stretches throughout the Middle East, new anxieties have surfaced. Since cargo ships do not pass across the Red Sea, costs and transit times are considerable. Exporters believe that until the war is over, shipments of ready-made clothing will not stabilize.
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