Bangladesh’s apparel exports registered a near 50% growth compared to last year – amounting to US$ 3.52 billion – in the first 27 days of June, shrugging off the 40-year high record inflation in the United States and European countries prompted by the Russia-Ukraine war.
The sector also enjoyed an over 1,200% growth year-on-year in a single day during the period, but the shipment also witnessed up to 39% negative growth year-on-year in three days export out of 27 days, said sources at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The BGMEA came up with the calculation based on the National Board of Revenue data as the Export Promotion Bureau (EPB) is yet to make the official announcement.
In July-May of FY22, readymade garment shipment saw about 35% growth to US$ 38.52 billion compared to the same period last year, according to data published by the EPB. BGMEA President Faruque Hassan expects the trend to continue in the next two months. He, however, said next year would be tough due to global inflation and recession as some buyers with good inventory would be careful in placing new orders. The BGMEA president also hoped that this year will be concluded with about 36% growth and the positive growth maintained next year.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) former president Fazlul Hoque said the apparel industry was still enjoying some excess orders shipment benefits owing to increased global demand. Those additional orders are at the last stage of shipment, but apparel exports will return to the regular trend as Eid Ul Adha will affect exports.
Some buying houses have confirmed that order placements are slowing down from the US and EU. The said that order placements from Japan and South Korea have remained the same growth till now. However, the industry is cautious as most countries are battling inflationary pressures.
Ashikur Rahman Tuhin, managing director of TAD Group and a former director of BGMEA, said apparel exports might be affected due to the global inflation, but it has a chance of bouncing back during the next Christmas sales.