The earnings, however, fell 4.28% short of the $58 billion target amid lukewarm global demand, economic turmoil, geopolitical crisis, and inflationary pressures.
The extraordinary performance of the apparel sector kept Bangladesh’s exports growing by 6.67% year-on-year and reached $55.55 billion in the outgoing fiscal FY23, according to the data released by the Export Promotion Bureau (EPB).
The merchandise export earnings crossed the milestone of $50 billion for the second consecutive year. The earnings were $52.08 billion in FY22. The FY23 earnings, however, fell 4.28% short of the $58 billion target amid lukewarm global demand, economic turmoil, geopolitical crisis, and inflationary pressures.
In June FY23, Bangladesh earned $5.03 billion, up 2.51% compared to the same period of the previous year. Representatives of Bangladesh RMG associations said they are defying global economic slowdown and making all-out efforts to diversify apparel products and explore new markets to achieve double-digit growth.
Including high-value items in the country’s apparel goods has worked as a driving force. Besides, exporters are exploring new markets, such as Japan, Korea, India, and non-traditional ones, which has contributed a lot to the export growth.
According to EPB apparel exports surged by 10.27 percent year-on-year to $46.99 billion in FY23, with woven apparel contributing $21.25 billion showing a 9.56 percent growth and knitwear $25.74 billion which rose by 10.87 percent. The earnings from apparel items were 0.41 percent higher than the $46.80 billion target set for FY23.
Exporters sought government policy support for further diversification of apparel goods, particularly to non-cotton or man-made fiber items, as they are now dominating global markets. They expressed concerns about a potential decline in Bangladesh’s apparel exports in the coming months, as most factories are operating below their full capacity due to low order volumes.
Once billion-dollar-earner jute and jute goods sector, which used to be called “golden fiber”, experienced over 19 percent negative growth to stand at $912 million worth of exports.
Jute traders said that this year, Bangladesh jute farmers saw bumper yields in cultivation, which will naturally stabilize the market. Home textile exports experienced over 32 percent negative growth to stand at $1.09 billion in FY 23.
Local home textile manufacturers are facing various challenges such as decreased production at factories due to energy shortages, surges in utility prices, and rising costs of raw materials. They are now cutting costs to sustain the business.
RMG exports kept Bangladesh exports growing
