Recent data on Bangladesh’s readymade garment exports to the European Union (EU) presents a complex picture of resilience amid adversity.
While overall export growth has shown a modest increase of 0.76 per cent from January to October 2024, the significant surge of 33.78 per cent in October alone raises questions about the sustainability of this growth trajectory.
This newspaper on Tuesday reported that apparel exports to the EU from Bangladesh reached €15.19 billion in the third quarter of this fiscal year, a decline from €15.88 billion in the same period last year.
This decline can be attributed to a combination of factors, including political instability and labour unrest, which led to shipment delays in July and August.
The backlog created during these months appears to have contributed to the remarkable spike in October, suggesting that while immediate demand may recover, the underlying issues remain unresolved.
Moreover, the overall growth in EU apparel imports has been tepid, with a mere 0.16 per cent increase across all supplier countries.
This stagnation highlights the competitive pressures faced by Bangladesh, particularly from other major exporters like China, Turkey, Vietnam, and Pakistan.
While China and Vietnam have seen slight increases in their exports, Turkey has experienced a notable decline, underscoring the volatility in the global garment market.
We here like to quote a former vice president of the BGMEA, who aptly noted that the dramatic rise in October’s exports seems unusual.
Stakeholders must approach this surge cautiously, recognising that it may not reflect a sustainable trend but rather a temporary correction of previous delays.
Looking ahead, the future of Bangladesh’s garment sector hinges on the resolution of internal challenges.
If the political climate stabilises and labour conditions improve, there is potential for a more consistent flow of orders from global buyers.
The optimism expressed by industry leaders is commendable, yet it must be tempered with a realistic assessment of the ongoing challenges.
Indeed, while the recent surge in exports offers a glimmer of hope, Bangladesh must address the root causes of instability and ensure that its garment sector can thrive sustainably in the competitive global market. Only then can it truly capitalise on the opportunities that lie ahead.
