As like September, Bangladesh is going to face a major negative growth in the export of ready-made garments (RMG) in the current month of October. In the first 20 days of the current month, apparel exports were worth $1.77 billion, which was $2.17 billion in the same period of the last financial year. That is, in 20 days, garment exports have decreased by about 19 percent compared to the same period of the last financial year, according to BGMEA data compiled from the National Board of Revenue.
Amid the global inflation and recession, Bangladesh’s garment exports witnessed a 7.52 percent negative growth for the first time in September after 13 months due to a decrease in the demand for manufactured garments in the main markets of Bangladesh.
According to the RMG entrepreneurs, this negative growth will be more this month and this situation will continue for the next few months.
Faruque Hasan, President of BGMEA, said, garment exports will decrease at a higher rate in October compared to September. I do not see any hope of improvement in the situation in the next few months. The main reason is the decrease in global demand, he added.
BGMEA Vice-President Md Shahidullah Azim said the main reason for this was the Russia-Ukraine war which has created instability in the global market, resulting in record-high inflation in major RMG destinations.
Several factories are running at half their production capacity and some have not received work orders for November and December, he noted. The situation will hardly improve before next January, he predicted.
Talking to several garment industry owners, it is said that the production of most factories has dropped below 30 percent compared to three-four months ago.
Economists also see no chance of the situation improving before next January or February. Executive Director of Policy Research Institute (PRI). Ahsan H. Mansur told, ‘This situation may continue till February in garment exports.
Executive Director of Policy Research Institute (PRI). Ahsan H. Mansur told, ‘This situation may continue till February in garment exports. As in the last fiscal year 2021-22, Bangladesh’s exports may not achieve 35 percent, ultimately making it difficult to sustain growth even.’
In such a situation, the gas and electricity crisis has further increased the production cost. Entrepreneurs in the garment and textile sector have sought policy support from the government in this situation.