Bangladesh exports earnings from the apparel sector, the lifeline of the economy, have seen a nearly 4% growth to $5.73 billion in July and August period of the current fiscal.
Figure 1: Bangladesh exports earnings from apparel sector have seen a nearly 4% growth in July and August, 2018.
According to the Export Promotion Bureau (EPB) data released on 11 September, in July and August period of the fiscal year 2018-19, Bangladesh’s exports earnings from the readymade garment sector stood at $5.73 billion, up by 3.82% compared to $5.52 billion in the same period a year ago.
The export earnings are 3.96% higher than the target of 45.51 billion set for the month of August.
Of the total amount, Knitwear products earned $2.91 billion, which is 1.53% higher than the $2.86 billion in the same period a year ago. Woven products earned $2.82 billion, up by 6.28%, compared to $2.65 billion a year ago.
Figure 2: Bangladesh RMG exports earnings from January 2018 to August 2018 (in billions USD). Source: EPB
Talking to the Textile Today, sector people opined that the export earnings less than the expectation. This is because of slower shipment due to holidays on the occasion of Eid-ul-Azha as it hurt the production hours as well as shipment of finished goods.
In July, the first month of the fiscal year, exports earnings from the clothing sector recorded a 21.72% rise to $3.01 billion, the highest single-month growth since August 2015.
“We are not worried about the export performance in July-August period as there were holidays on the occasion of Eid-ul-Azha, which hurt production as well as shipment. So, the sector has seen a slower growth,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Vice President Mohammed Nasir said the Textile Today.
I am hopeful that the exports earnings will see a sharp rise in next month and maintain a good performance at the end of the year, he added.
“There may be up and down in export earnings in a single month but it does not mean negative growth. We have to see the final growth,” Former Caretaker Government Advisor AB Mirza Azizul Islam said the Textile Today.
“But continuous negative growth in a single month will result in a negative growth. If it happens, the government should find out the reasons and take steps,” added Islam.
Since Bangladesh’s export earnings are mostly dependent on apparel sector, the government has to put emphasis diversification of export basket to reduce dependency on a single sector, he added.
However, the overall exports earnings posted a 2.51% rise to $6.8 billion in July-August period of the Fiscal Year 2018-19. In the same period a year ago, Bangladesh earned $6.62 billion.
On the other hand, the country’s overall exports earnings in August has declined by 11.74% to $3.21 billion due to slower growth in the apparel sector.