Export growth slows down in August

Staff Reporter :
The country’s export growth slowed down significantly in August as there was a reduction in growth of shipment of manufactured products, particularly readymade garments.

According to data of the Export Promotion Bureau (EPB) released on Monday, the country earned $4.7 billion, registering a 3.8 per cent year-on-year growth over the same period a year ago.

In August last year, shipment surged 36 per cent compared with the previous year, the EPB data mentioned.

With August receipts, overall proceeds from exports grew 9 per cent year on year to $9.37 billion in the first two months of the fiscal year 2023-24 beginning from July.

Garments, the biggest export-earning sector which registered 26 per cent growth during the July-August period of the previous fiscal year, rose 12 per cent this fiscal year.

Apparel makers fetched $7.99 billion in the two months, up from $7.11 billion the same period a year ago, according to the EPB data.

The export of knitwear was $ 4.58 billion, while the export of woven garments was US$ 3.42 billion, registering 17.02 per cent and 6.86 per cent year-over-year growth respectively, the data showed.

The single-month apparel export earning in August 2023 was $ 4.04 billion with 7.99 per cent growth compared to August 2022.

BGMEA Director Mohiuddin Rubel said, “The overall RMG export growth is quite impressive. But, the recent trend reflects depressing scenario of the retail business and economy, which might be continued throughout this year.”

“For Bangladesh, the positive side is that we are being able to gradually diversify our products and moving toward sophisticated items, which is reflected in the growth,” he added.

Two other major sectors — leather and leather products, as well as jute and jute goods — suffered a decline in export earnings.

But, the other sectors – primary commodities, frozen and live fish, agricultural products, manufactured commodities, plastic products and non-leather footwear – also experienced positive growth year-on-year.

The figures showing slowdown in export growth comes a day after the Bangladesh Bank said inflow of remittance, another major source of foreign currency for Bangladesh, slumped last month.

Data about the two major sectors comes at a time when Bangladesh’s foreign exchange reserve is gradually falling.

The overall forex reserve stood $23.06 billion on August 30 and is projected to slip below the $23 billion-mark this week after a $1.20 billion payment to the Asian Clearing Union for imports from eight Asian countries.