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Export earnings drop

Published : 03 Oct 2022 09:48 PM

After 13 months of much needed recovery of the export from pandemic and promising growth, export declined by 7.52 percent in September 2022 compared to same month in 2021.  

According to Export Promotion Bureau (EPB) released export data for July-September FY 2022-23. 

Bangladesh’s export income has witnessed a downward trend due to the impact of the war. 

The country has exported goods worth USD 3.90 billion to various countries in the month of September. This figure is 7.52 percent less than the same month last year. 

The government had set a target of USD 4.20 income from export last September. In September 2021, the revenue was 4.16 billion dollars. After a long time, Bangladesh saw a negative growth in product exports.

During the first quarter of FY2022-23 RMG export reached USD 10.27 billion, which is 13.41 percent higher than previous year.Knitwear export declined by 9 percent, while woven export declined by 5.66 percent. 

Garment exporters said that two of Bangladesh’s main garment markets the United States and Europe have cut back on clothing purchases due to abnormally high inflation in their countries and Russia-Ukraine war. They have to spend more on food now. That is why the export income is decreasing.

“BGMEA already shared early indication of growth slowdown from September onwards which is apparently reflected in export data for September. The global retail market is disrupted by many challenges starting from post pandemic container freight and supply chain crisis, raw materials price hike, and then anticipated recession in the global economy which is halting retail sales and demand for clothing,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Mohiuddin Rubel told Bangladesh Post. 

“Buyers are following cautious steps to make their inventory and supply chain optimum, so some of them are even holding back production and orders. Altogether it has been quite a fluid and vulnerable situation, where we have all the strengths and possibilities to grow given our sustainability and competitiveness strides, yet the global economic outlook makes it difficult to foresee something bright for the final quarter of the year 2022,” he added.