Bangladeshi garment exports to the US, the largest market, fell about 25% last year to $7.28 billion due to a slowdown in American fashion imports amid high inflation.
According to the US Office of Textiles and Apparel (OTEXA), overall US imports of textiles and garments declined by over 20% to $104.95 billion last year, with garment imports alone dropping by 22.05% to $77.84 billion.
China, the leading global apparel supplier, also experienced a decrease in textile and garment exports to the US, down by 22.86% to $25.19 billion, with garment exports alone falling by 24.98% to $16.31 billion.
In 2022, Bangladeshi garment exports to the US were over 50% higher than in 2021, driven by pent-up demand as the global supply chain recovered from the impacts of COVID-19.
This surge led to unsold inventory, which American retailers focused on clearing last year, resulting in reduced imports and a process of adjustment for Bangladesh’s garment exports.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributes last year’s overall decline in US garment imports to low consumer spending caused by high inflation.
Matthew Shay, president and CEO of the National Retail Federation (NRF), expects sales growth of 3 to 4%, reflecting a more sustainable rate compared to the pandemic years.
Shay highlights low unemployment and steady wage growth as drivers of consumer spending, emphasizing the importance of the Federal Reserve’s management of interest rates and other external factors.