After largescale order cancellations due to global Coronavirus outbreak – which runs to a whopping US $ 3.15 billion by some estimates – Bangladesh garment makers are now bracing for a significant export fall.
Export decline of a staggering US $ 5 billion! This is what the garment makers of the country are apprehending between March and May ’20.
As per media reports, the apex garment exporters’ body of Bangladesh, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), reached this projected figure based on the data provided by the Export Promotion Bureau (EPB) of Bangladesh and the country’s National Board of Revenue (NBR).
“It can be estimated that export from March to May 2020 will fall short of around US $ 4.9 billion from regular exports or confirmed orders,” stated BGMEA President Dr. Rubana Huq.
BGMEA reached the conclusion based on EPB and NBR’s statistics, underlining that in March, exports fell by 30.19 per cent while shipments dipped by 77.76 per cent in April first week.
Considering that it takes around 3 weeks to ready an order and the holy festival of Eid and ensuing holidays coming up by May 20, it would be difficult to prepare orders for shipments next month as well.
Bangladesh is currently under a countrywide lockdown till 25 April.
As per the traders’ body, US $ 761.78 million would be earned in April’20 as compared to US $ 2.53 billion of the corresponding period of April’19, while the earning of May ’20 has been estimated at US $ 972.95 million, which was US $ 3.24 billion in May’19.