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Bangladesh's export earnings in October 2023 fell by 13.64 per cent year on year to $3.76 billion, the lowest since July this year, according to Export Promotion Bureau (EPB) data.
The decline was driven by a significant drop in shipments of ready-made garments (RMG) -- the country's main foreign-currency earner.
The RMG sector fetched $3.17 billion in October, down by 13.93 per cent from the same month last year. Apparel shipments were particularly weak in the knitwear subsector, which generated $1.91 billion, down by 7.8 per cent.
Earnings from woven garments also fell, by 22 per cent, to $1.25 billion.
The single-month earnings in October also fell short of the target by 28.35 per cent, according to the EPB.
However, the overall export earnings in July to October of fiscal 2023-24 recorded a sluggish growth of 3.52 per cent to $17.44 billion, compared to $16.85 billion during the same period of fiscal 2022-23.
The overall earnings fell short of the $19.23 billion target by 9.31 per cent in the July-October period of the current fiscal year.
Amid the ongoing dollar crisis, high inflation and weakening local currency taka, the decline in export earnings causes further concern for Bangladesh.
Despite growth led by value addition and good performance in new export destinations, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said work orders have declined in the past several months.
He attributed the fall in global demand to the Russia-Ukraine war, which has fueled high inflation and interest rates.
To curb inflation, advanced economies have increased bank interest rates, which is limiting the purchasing power of consumers and demand for goods.
"The ongoing Israel-Hamas war has added further fuel to the crisis," said the BGMEA president.
Yet, the ongoing labour unrest, which has allegedly sparked around the minimum wage issues, has seriously interrupted the industry and exports for the past week. This has led to such a decline in exports in October, Mr Hassan said.
He said while the minimum wage review is under process and the Minimum Wage Board is working within its given time, such violent protest is "unfortunate".
"As we are passing through a turbulent time globally, such incidents will not be helpful in bending the export growth curve up and we cannot afford any adverse impact on employment and foreign exchange earnings caused by anarchy in the industry."
The BGMEA president, however, apprehended that 2023 RMG exports might not be able to sustain the earnings of 2022.
The RMG sector fetched the country $14.78 billion in the July-October period, marking a 5.95 per cent growth.
On the downside, the home textiles sector experienced a decline of around 45 per cent, with earnings amounting to $238.81 million.
According to EPB data, exports of jute and jute goods stood at $289.70 million, recording an 11.26 per cent fall.
Earnings from agricultural items like vegetables, fruits and dry foods also registered a decline of 4.34 per cent to $334.34 million.
Export earnings from engineering products decreased by 10.19 per cent to $159.70 million during the July-October period of FY24.
Export earnings from frozen and live fish decreased by 20.63 per cent to $136.26 million in the same period. Pharmaceutical exports fetched $65.36 million, registering a 15.44 per cent growth.
Bangladesh received $325.57 million from the export of leather and leather goods in July-October, marking a negative growth of 24 per cent. Export earnings from footwear other than leather items also decreased by 8.16 per cent to $155.26 million during the period.
The EPB data also show that exports of plastic products witnessed a 14.14 per cent growth, reaching $71.12 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 export, riding on double-digit growth for readymade garments.