RMG exports to major destinations see marginal growth

Business Report :
Export of the readymade garment (RMG) from Bangladesh grew narrowly to its key destinations in the first four months of the current financial year 2023-24 (FY24), including both traditional and non-traditional markets.
However, exports to its largest and second largest export destinations – the USA and Germany – declined in the aforementioned period.
According to the Export Promotion Bureau’s (EPB) country-wise detailed apparel export data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported apparel items worth $14.78 billion in July-October of FY24, a narrow increase of 5.95%, from $13.95 billion in the same period of FY23.
During this period, Bangladesh exported RMG items worth $2.57 billion to the United States, the largest single export destination for Bangladesh, fetching a negative Y-o-Y growth of 3.05%, compared to the $2.66 billion of the mentioned period of FY23.
Although exports to the US returned to a positive trajectory in September after experiencing consecutive months of negative growth, in October, exports declined again.
Moreover, exports to Germany, the second largest destination for the RMG manufacturers, continued to experience a negative trend as the country was fighting against recession-like economic turbulence and inflation.
Bangladesh shipped garments worth $1.81 billion to Germany, reflecting a decline of 11.49% from the $2.04 billion recorded in July-October of FY23.
In the July-October period of FY24, with a moderate YoY growth of 14.63%, Bangladesh exported apparel goods worth $1.8 billion to the UK, the third highest destination for the country’s RMG products, up from last year’s $1.57 billion, EPB data stated.
Other destinations
Apparel export to the other major destinations such as Spain, France, Netherlands, Italy and Poland also registered positive growth by 18.07% to $1.3 billion, by 2.56% to $887.23 million, by 12.73% to $626.58 million, by 9.88% to $602.66 million and by 26.24% to $503.4 million respectively.
During this period, the apparel export to the overall EU market soared narrowly by 3.99% to $7.06 billion from $6.79 billion in the same period of last fiscal year.
During July-October of FY2023-24, exports to Canada fell by 1.53% to $462.86 million, lower from $470.03 million in the mentioned period of the last FY, EPB data showed.