Bangladesh’s garment exports to its largest export market, the United States, experienced a significant decline in the first four months of 2024.
From January to April, exports fell by 14.44% year-on-year, amounting to $2.3 billion, as reported by the Office of Textiles and Apparel (OTEXA), an entity under the US Department of Commerce.
This decline is part of a broader trend, as American buyers have reduced their apparel imports from global markets.
During the same period, the combined export of textiles and garments from Bangladesh to the US also saw a similar decrease, dropping by 14.15% to $2.38 billion.
This decline has raised concerns among Bangladeshi exporters, who attribute the slowdown to reduced orders from US clothing retailers and brands. The high inflationary pressures affecting American consumers have led to decreased spending, impacting import volumes.
Bangladeshi garment exporters have observed a consistent decline in shipments to the US over recent months. They note that the inflationary environment in the US has forced retailers and brands to cut back on their inventory purchases, affecting demand for Bangladeshi apparel.
This trend poses challenges for Bangladesh, which relies heavily on its garment sector as a critical economic growth and employment driver.
The US remains a vital market for Bangladeshi garments, and the current downturn underscores the sector’s vulnerability to global economic fluctuations.
For Bangladesh, maintaining competitiveness and exploring new market opportunities will be essential strategies to mitigate the impact of reduced demand from traditional markets.