Bangladesh’s readymade garment (RMG) exports to the European Union (EU) reached $19.90 billion during the July-April period of the 2023-24 fiscal year, marking a 3.66 percent increase compared to the same period in the previous fiscal year, according to data released by the Export Promotion Bureau (EPB).
According to Mohiuddin Rubel, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), specific EU markets demonstrated notable growth. Exports to Spain rose by 6.07 percent, France by 3.42 percent, the Netherlands by 17.51 percent, Poland by 20.65 percent, and Denmark by an impressive 32 percent.
The growth can be attributed to factors including competitive pricing, improved quality, and robust supply chain management by Bangladeshi manufacturers.
However, the performance in other significant markets presented a mixed picture. Exports to Italy decreased by 2.45 percent. More concerning was the decline in Germany, the largest EU market for Bangladesh’s RMG exports, which saw a 9.40 percent drop to $5.01 billion.
This substantial reduction reflects the economic challenges faced by Germany, including inflationary pressures and reduced consumer spending.
In the United States, Bangladesh’s RMG exports experienced a slight decline of 1.90 percent, amounting to $6.81 billion in the first ten months of the 2023-24 fiscal year.
Conversely, the UK and Canada emerged as bright spots for Bangladesh’s RMG sector. Exports to the UK soared to $4.8 billion, a 14.55 percent year-on-year increase. Similarly, exports to Canada reached $1.26 billion, reflecting a 2.95 percent rise.
Bangladesh’s RMG exports to non-traditional markets grew robustly, increasing by 10 percent to $7.70 billion from $7 billion in the previous year. Japan, Australia, and South Korea were noteworthy among these markets, which saw growth rates of 6.14 percent, 17.18 percent, and 14.73 percent, respectively.
Despite these positive trends, exports to India recorded a significant decline of 22.44 percent. This downturn has been ongoing since August 2023.
