Export rebounds with $5.72b earning in Jan

The external-trade growth in the first month of the year 2024 was 11.45 per cent year on year, with apparel shipments overwhelmingly dominating the invoice as usual.

Export receipts amounted to US$5.13 billion in January 2023, according to Export Promotion Bureau (EPB) data published Sunday.

Out of the total January'24 earnings, readymade garment (RMG) fetched US$4.97 billion on a 12.45-percent growth, after three consecutive months of negative growth since October 2023. Apparel sector singly earned US$4.42 billion in January 2023.

Knitwear subsector of the main export industry, which generated $2.69 billion, grew by 17.32 per cent last month while earnings from woven garments also increased by 7.16 per cent to $2.30 billion.

Both the subsectors of apparel had witnessed negative growth for three consecutive months since October 2023, data showed.

The country's overall export during the first seven months of the current fiscal year also marked a growth by 2.52 per cent to US$33.26 billion.

During the July-January period of fiscal 2022-23, Bangladesh earned US$32.44 billion, the EPB data showed.

The overall export earnings, however, fell short of the target 7.28 per cent set for the period.

Asked about the trade performance, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan said 2023 was not a good year as buyers placed less work orders and sold from their piled-up inventory.

"Global market was slow while local shipments witnessed negative growth in major markets," he said. "But at the end of last year, buyers' stock started decreasing, resulting in rise of work orders."

The association chief, however, mentions that global demand has not increased at desired level though inflation rates have been decreasing, because interest rates in major western markets have yet to come down.

Shipments to the new markets and development of some of the value- added products also played important roles in bringing the export earnings back on the positive track in January, he noted, adding that Bangladesh nowadays produces value-added wears like jacket with FoB $100.

The BGMEA president sets his sights high past the coming months for exports to grow further.

To regain pace in the export, he says, the government needs to provide support to the export sector for this year but, instead, the government cut down cash incentives.

"It would be damaging for the sector," he notes.

During July-January period of 2023-24 fiscal, the RMG exports fetched the country $28.36 billion-US$16.17 billion from knitwear and US$12.18 billion from woven garments-marking a 3.45-percent growth.

On the downside, the home-textile sector experienced a decline of 34.37 per cent during July-January period of fiscal'24, with earnings amounting to $454.74 million.

According to EPB data, exports of jute and jute goods stood at $510.54 million, in a 6.85-percent fall.

Earnings from agricultural items like vegetables, fruits and dry foods, however, registered a growth of 4.44 per cent to $572.72 million during the first seven months.

Export earnings from engineering products decreased by 6.41 per cent to $289.19 million during the July-January period.

Earnings from frozen and live fish exports decreased 14.9 per cent to $248.19 million.

Bangladesh received $628.06 million from the export of leather and leather goods in July-January, in a negative growth of 14.33 per cent.

Pharmaceutical exports fetched $117.38 million, registering a 9.98-percent growth.

Export earnings from footwear other than leather items also increased by 2.57 per cent to $296.24 million.

The EPB data also show that exports of plastic products witnessed a 15.48-percent growth, reaching $141.39 million.

In a much-anticipated relief amid a foreign-exchange crunch, Bangladesh in the last fiscal year bagged a record-high $55.55 billion in earnings from merchandise exports, riding on a double-digit growth for readymade garments.

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