In October 2023, Bangladesh experienced negative growth in its export earnings for the first time in the financial year 2023-24.
This decline was primarily attributed to reduced demand for apparel products in the United States and the European Union, which resulted from the economic slowdown caused by the Russia-Ukraine war.
Export earnings in October 2023 fell by 13.64 per cent year-on-year, amounting to US $ 3.76 billion, compared to US $ 4.35 billion in the same month of the previous financial year (FY ’23), as reported by the Export Promotion Bureau.
The ongoing Israel-Hamas conflict also contributed to the economic crisis.
Despite this decline, export earnings for July-October of FY ’24 increased by 3.52 per cent to US $ 17.44 billion compared to the same period in FY ’23.
However, this still fell 9.31 per cent short of the Government’s target of US $ 19.24 billion.
In particular, readymade garment exports in October 2023 fell by 13.93 per cent to US $ 3.16 billion compared to October 2022.
The export earnings for October 2023 were 28.35 per cent below the Government’s target of US $ 5.25 billion.
Despite these challenges, apparel exports for July-October of FY ’24 grew by 5.95 per cent to US $ 14.78 billion compared to the same period in FY ’23.
Faruque Hassan, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), explained that the global market experienced reduced sales and demand due to the economic slowdown following the Russia-Ukraine war.
He also noted that ongoing conflicts, such as the Israel-Hamas war, further exacerbated the situation.
Labour unrest in the country had also disrupted exports in recent weeks even as earnings from woven garment exports in the first four months of FY ’24 decreased by 1.94 per cent to US $ 6.10 billion compared to the same period in the previous financial year.
