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Merchandise export in July-November period of the current fiscal missed the target as earnings fell 9.23 per cent to $22.23 billion, although the five-month income marked some annualised growth.
Latest official statistics show the November monthly turnover posted a growth of 27 percent over that of October, despite falling short of monthly target.
The merchandise exports maintained slow growth with the July-November shipments showing a marginal 1.30-percent rise to US$22.23 billion on a year-on-year basis of accounting. During the same period of last fiscal year, exports fetched US$21.94 billion, according to Export Promotion Bureau (EPB) data released Monday.
The overall July-November earnings in the current FY24 fell short of the $24.49-billion target by 9.23 per cent.
Single-month export earnings in November 2023, however, for the second consecutive month after October, fell by 6.05 per cent year on year to US$4.78 billion which was US$5.09 billion in November 2022, according to EPB data.
The earnings in October 2023 were US$3.76 billion in a 13.64-percent negative growth compared to US$4.35 billion earned in October 2022.
The November decline was driven by a significant drop in shipments of ready-made garments (RMG) -- the country's main foreign-currency earner.
The RMG sector earned $4.05 billion in November this year, down by 7.45 per cent from the same month last year.
Apparel shipments were weak in the knitwear subsector, which generated $2.31 billion, down by 3.18 per cent. Earnings from woven garments also fell, by 12.59 per cent, to $1.73 billion.
The single-month overall earnings in November also fell short of the target by 8.94 per cent, according to the EPB.
Amid the ongoing dollar crisis, high inflation and weakening local- currency taka, the decline in export earnings causes further concern for Bangladesh.
When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said, "Work orders had declined in the past several months while unit prices of garments also marked a decline."
He attributed the fall in global demand to the Russia-Ukraine war, which has fueled high inflation and interest rates to erode buyer affordability.
To curb inflation, advanced economies have increased bank-interest rates, thus limiting the purchasing power of consumers and demand for goods.
"Besides, shipments suffered due to the labour unrest that hampered production in a good number of factories," he noted. Talking to the FE, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) executive president Mohammad Hatem said the negative growth would be higher than the growth shown in data.
There is fall in work orders while gas supply has further deteriorated the situation, compelling factories to run at 50 per cent of their capacity.
"As a result, we are not getting required fabrics and other related raw materials in time due to gas problem," he said.
The RMG exports fetched the country $18.83 billion-US$10.98 billion from knitwear and US$7.84 billion from woven garments-- in the July-November period, marking a 2.75-percent growth.
On the downside, the home-textile sector experienced a decline of around 42.27per cent, with earnings amounting to $299.42 million.
According to EPB data, exports of jute and jute goods stood at $361.91 million, in a 10.99-percent fall.
Earnings from agricultural items like vegetables, fruits and dry foods also registered a decline of 0.86 per cent to $420.59 million.
Export earnings from engineering products decreased over 8.0 per cent to $200.82 million during the July-November period of FY24.
Export earnings from frozen and live fishes decreased by 15.88 per cent to $175.19 million in the same period. Pharmaceutical exports fetched $80.26 million, registering an 8.14-percent growth.
Bangladesh received $427.02 million from the export of leather and leather goods in July-November, in a negative growth of 20.55 per cent. Export earnings from footwear other than leather items also decreased by 7.16 per cent to $194.51 million during the period. The EPB data also show that exports of plastic products witnessed a 14.90-percent growth, reaching $92.60 million.
In a much-anticipated relief amid a forex crunch, Bangladesh in the last fiscal year bagged a record-high $55.55 billion in earnings from merchandise exports, riding on double-digit growth for readymade garments.