Flattening export growth calls for urgent remedial measures

The country’s overall exports increased by only 3.35 percent in the outgoing fiscal 2014-15 to $31.2 billion showing it is flattening based on a single product export, reports national daily on Tuesday as it stands below this year’s target of $33.2 billion. It calls for urgent measures so that the growth rate bounces back. This is a figure much below of the export growth rate at 10 percent annually in early 2010s and over 15 to 20 percent 10 years ago. Bangladesh’s exports mainly cover garment products which suffered the biggest shock with the Rana Plaza disaster in 2013 that killed over 1200 workers followed by another fire at Tazreen Garments killing dozens others.
Nonetheless, it was picking up again through 2014 but the political crisis early this year which caused the prolonged shutdown of the economy from January to March caused yet another shock to exports as the garment exporters mainly failed to put the timely shipments to buyers. Many buyers moved out at this time and others reduced their orders fearing risks of another crisis that may befall again. So last year’s export target remained unfulfilled from poor garment export in particular while the export growth rate also continue to flatten in keeping with a recent slowing down trend.
This is what the short term explanation of a nose dive in the country’s export may be argued for but experts fear that the growth of garment exports may continue to remain at the low as the size of the industry has grown up and export volume is widening every year. So there is a need for urgent export diversification in new potential sectors while accelerating the expansion of export from other industrial sectors by raising their volume and also the value and the quality of the products. Experts have warned the business sector of depending on a single product and the recent slow down in garment exports once again remind the business that time is running out to diversify the export base to new areas such more and more ICT products under new outsourcing arrangements. Moreover Bangladesh has very highly potential pharmaceutical sector, ceramic and tiles products, leather goods and agri-products which may have greater access to global market with blending from state of the art technology and global marketing drive.
There is no doubt the garment industry will remain the country’s biggest asset and its Transformation to producing new taste and fashion products and higher value produce must continue with reforms and implementation of safety compliance at all level. There is no doubt that our private sector has proved worthy to face global challenges. The industry should have therefore good environment to grow free from political chaos so that foreign investment can pour it without fear from risks. Financial market reforms should also continue to ensure industrial sector growth at low cost to accelerate exports. Exports give both employment and income to the people; its nose dive over a longer period would be catastrophic. There must be every effort to bring back the export growth to double digit figure.