Why did exports fall for the first time in 14 months?

Last month, Bangladesh’s export earnings fell to a 13-month low of $3.9 billion. Why?

Experts say the slippage is not due to the country’s internal failure. Rather, the war in Ukraine and double-digit inflation in the eurozone are the culprits.

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The 27 countries of the European Union form the largest trading bloc for clothing products from Bangladesh, from where the South Asian nation derives most of its foreign currency.

Photo: star/file


Photo: star/file

Supply chain disruption caused by the war in Ukraine fueled electricity and natural gas prices in the EU, ultimately causing the 19 eurozone member states – part of the EU – were hit by record inflation of 10% in September.

Almost at the same time, the United States, which is Bangladesh’s largest RMG market as a country, reported that its average payment for consumer goods rose 8.3% year-on-year in August.

Thus, the two markets either reduced clothing orders or reduced the purchase of ready-made products, which led to a 5.66% drop in exports of woven fabrics from Bangladesh and a 9% drop in shipments of knits in September.

However, it is a matter of joy that overall exports and apparel shipments recorded an increase of more than 13% year-on-year in the last July-September quarter.

And now apparel makers are hoping the sector will rebound strongly from December as international buyers confirm their previously stalled orders.