At the conclusion of the fiscal year (FY) 2021-22, Bangladesh witnessed eight sectors achieving export figures surpassing half a billion dollars. However, excluding knitwear, the other seven major sectors, including leather, which had previously recorded at least half a billion dollars in annual export revenue in FY 2021-22, experienced declines in the first half of the current fiscal year 2023-24, according to data released by the Export Promotion Bureau (EPB).
Exporters attribute this decline to diminished demand from major markets like Europe and the USA, where consumers have scaled back spending amid high inflation and post-Covid-19 inventory build-up.
The ongoing Russia-Ukraine war and geopolitical tensions have further contributed to weakened sales.
Despite these challenges, the outlook for a swift recovery appears grim. Md Nasir Khan, vice-president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), expressed concerns, stating, “I do not see any possibility of a sharp rebound soon. Buyers are not placing orders but rather observing ahead of the general election. We are concerned.”
Members of the LFMEAB, representing leather products and footwear manufacturers, generated approximately US $ 1 billion in export earnings in FY 2022-23.
However, makers of leather and leather goods, including footwear, have witnessed a decline in overseas sales during the current fiscal year, with export proceeds falling by 18 per cent year-on-year to US $ 523 million in the July-December period of FY24.