Due to the Russia-Ukraine war, the world economy is in recession. Bangladesh’s main garment exporting countries have reduced their purchases of garments which shock has come to Bangladesh’s main export product, readymade garments. Faruque Hasan, President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the top organization of Bangladesh’s garment exporters, has expressed fear, “Garment exports will decrease by 20 percent in the current month of October.”
He said this at the ‘Meet the Press’ event organized at the BGMEA building on Sunday.
There has been steady growth in the garment industry from August last year to August this year. Due to this, in the last financial year, the export from this industry sector was 42.6 billion dollars. But in the last two months we have noticed with concern that step-by-step purchase orders are decreasing, he said.
BGMEA president said, all major markets including the US, and Germany are being affected by the Ukraine-Russia war, global economic instability, inflation and local market impact. This is likely to further reduce export growth in November.
Hasan said ongoing power and gas shortages in industrial plants have exacerbated the declining trend in garment exports as factories and mills are unable to run at full capacity. He urged the government to ensure uninterrupted gas and electricity supply to the garment factories under special measures to save the industry.