Merchandise exports surge 10.63pc YoY, backed by RMG growth

Muhid Hasan :

Bangladesh’s merchandise exports rose by 10.63 per cent year-on-year during the July-March period of the current 2024-25 fiscal year, driven predominantly by increased garment shipments.

In the first nine months of this fiscal year, the country exported goods worth $37.19 billion, up from $33.62 billion in the same period of the previous fiscal year, marking a $3.57 billion increase, according to data from the Export Promotion Bureau (EPB) released on Monday.

The growth trajectory continued into March, with merchandise exports rising by 11.44 per cent to $4.20 billion, compared to $3.81 billion in March 2024.

The apparel sector, which continues to be the cornerstone of Bangladesh’s export economy, saw significant growth, contributing $30.25 billion from $27.3 billion during the July-January period of FY2024-25. This represents a 10.84 per cent increase compared to the same period in FY2023-24.

In March alone, ready-made garment (RMG) exports grew by 12.40 per cent, reaching $3.45 billion, up from $3.07 billion in March 2024.

Alongside RMG, other sectors such as home textiles, pharmaceuticals, leather and leather goods, and frozen fish also saw positive growth.

Home textiles, for instance, grew by 4.94 per cent to $677.6 million in the first nine months of FY2024-25, according to EPB data.

Pharmaceutical exports saw an increase of 7.92 per cent, amounting to $165.46 million, while exports of leather and leather products grew by 9.89 per cent to $852 million. Frozen fish exports also saw a strong rise, up 13.77 per cent to $343.28 million.

However, the export of jute and jute products, a traditional mainstay of Bangladesh’s export portfolio, declined by 7.68 per cent, totalling $626.26 million during the July-March period.

Despite the overall positive export figures, concerns about the sustainability of this growth were raised by prominent economist and academic Muinul Islam.

He expressed skepticism regarding the potential impact of the recent U.S. reciprocal tariffs, which he believes could raise prices and reduce demand for Bangladeshi products in the U.S. market. “The tariffs will have an impact, whether large or small, and could affect export volumes to the U.S.,” he told The New Nation.

The U.S. imported garments worth $79.26 billion in 2024, with Bangladesh being the third-largest exporter to the U.S. In 2024, Bangladesh exported $7.34 billion worth of RMG products, marking a 73 per cent increase from the previous year.

However, Islam highlighted the importance of diversifying products and export destinations, urging that improvements in law and order, energy supply, and banking support are essential to sustain growth in the export sector.

Looking ahead, Bangladesh aims to increase its merchandise and service exports by approximately 12.59 per cent to $57.5 billion in FY2024-25, with $50 billion expected from goods and the remainder from services. In FY2024, Bangladesh earned $44.48 billion from merchandise exports, which was 4.34 per cent lower than the previous year.

Despite the challenges posed by global economic conditions and trade barriers, Bangladesh remains optimistic about the future of its export sector, focusing on enhancing the competitiveness of its products in international markets.