Bangladesh’s overall apparel exports to some of its major export hubs as well as some non-traditional markets in the first quarter of financial year 2019-20 have registered negative/sluggish growth.
As per data, the country’s RMG export plunged in major destinations including European Union, Canada and some other non-traditional markets in this period, while its exports to the United States of America during the July-September period witnessed a meagre growth of less than 1.0 per cent.
Bangladesh fetched US $ 4.94 billion from apparel exports to EU, marking a 3.21 per cent negative growth compared to the earnings of US $ 5.11 billion in the corresponding period of last FY, while it shipped around 61.43 per cent of the total RMG exports (US $ 8.05 billion) to the EU during the period.
The country’s garment exports to Belgium, Germany, Italy and Spain witnessed negative growth of 1.12 per cent, 7.37 per cent, 11.80 per cent and 2.08 per cent, respectively, during the period, according to data from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), while on the other hand, apparel shipments to major EU countries like Denmark, France and the Netherlands maintained sluggish growth of less than 2.0 per cent.
Bangladesh’s exports to UK and Poland meanwhile grew by 5.76 per cent and 16.25 per cent, respectively, even as it fetched US $ 255.22 million from garment exports to Canada which is 1.55 per cent lower than the shipment of the corresponding period of last fiscal, according to data.
Sluggish EU economy, trade tension between China and USA and recent decline in prices of raw materials, especially cotton and yarn, are reportedly some of the major factors behind this poor show, as per industry insiders.