Bangladesh’s ready-made garment (RMG) exports to the European Union (EU) experienced a 5% decline in the first half of 2024 compared to the same period in the previous year, according to data released by Eurostat.
The sector, which is a vital contributor to Bangladesh’s economy, earned €8.72 billion from exports to the EU between January and June 2024, down from €9.17 billion during the same period in 2023.
This downturn in exports is largely attributed to a broader global economic slowdown, which has led to a reduction in the EU’s overall imports.
Compounding the issue, Bangladesh’s RMG sector has faced additional challenges, including energy shortages, extended lead times, and cumbersome customs procedures, which have eroded its competitive edge in the global market.
The EU’s total apparel imports during the first half of 2024 stood at €38.47 billion, a 6.02% decrease from the €40.94 billion recorded during the same period the previous year. Notably, China, the largest apparel exporter to the EU, also saw a significant decline in its exports, with a 7.23% drop to €9.16 billion in 2024 from €9.87 billion in 2023.
Other major apparel exporters to the EU, including Turkey, India, and Vietnam, also recorded negative growths in their exports. Turkey’s exports fell by 10.95% to €4.58 billion, India by 4.53% to €2.33 billion, and Vietnam by 6.15% to €1.70 billion during the same period.
Despite the decline, Bangladesh managed to maintain its position as the top exporter of knitwear to the EU, with shipments valued at €4.97 billion, ahead of China’s €4.51 billion.
