Last month, Bangladesh’s export earnings fell to a 13-month low of $3.9 billion. Why?
Experts say the slide came not for any internal failure of the country. Rather the Ukraine war and the double-digit inflation in the eurozone are the culprits here.
European Union’s 27 countries are the largest trade bloc for Bangladesh’s garment products, from where the south Asian nation earns most of its foreign currency.
The supply chain disruption caused by the Ukraine war fuelled electricity and natural gas prices in the EU, which eventually caused the 19-member states of the Eurozone—a part of the EU—to be hit by a record 10 per cent inflation in September.
Almost at the same time, the USA, which is Bangladesh’s biggest RMG market as a single country, reported its average payment for consumers goods rose by 8.3 per cent year-on-year in August.
So, the two markets either cut garment order or reduce taking the already-prepared products, resulting a 5.66 per cent fall in Bangladesh’s woven exports and 9 per cent decline in knitwear shipments in September.
However, it is a matter of joy that both overall export and garment shipment posted over 13 per cent year-on-year rise in the last July-September quarter.
And now the garment makers hope the sector will rebound strongly from December as the international buyers are confirming their previously stalled orders.