Bangladesh July-March exports rise on boost from Apparel & Jute

Desk Report       
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Bangladesh has earned around $26 billion from the export of goods in the first nine months (July-March) of the current fiscal year 2016 – 2017. The export figure, which was exactly $25.946 billion, is 4 percent more than what it was in the same period of 2015-16 fiscal.

Bangladesh July-March exports rise on boost from Apparel & Jute
Figure 1: Bangladesh July-March exports rise on boost from Apparel & Jute

Source: EPB

According to the Export Promotion Bureau (EPB), however the earnings fell 4.30 percent short of the target at $27.11 billion set for the nine-month period. Exports in March rose almost 10 percent year-on-year to $3.10 billion, beating the monthly target of $3.02 billion.

Shipment of garment, which contributes nearly 82 percent to the total national exports, increased 2.39 percent to $20.92 billion during July-March, compared to the same period a year ago.

BGMEA President, Siddiqur Rahman said, garment export growth should be more than 12 percent a year to reach the target of $50 billion by the end of 2021. This growth is too low for achieving the target. He also said, apparel shipment went down due to various factors — a fall of the euro against the US dollar, Brexit issues, the US elections and a decline in consumption in the West

Apparel exports to the US, the single largest export destination for Bangladesh, declined to some extent because of a volatile economy after the national elections.

Siddiqur Rahman said, “People in the West are now spending more on smart gadgets than on clothing. This is a major reason for a fall in consumption of clothing items worldwide.”

Vice-president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Mahmud Hasan Khan Babu said, “We are experiencing this slow rate of growth because of the drop in prices of garments in Europe and the US.”

Jute and jute goods also performed well in the July-March period, as exports grew 13.94 percent to $731.02 million, surpassing the target for the period at $706.35 million.

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