Garment exports from Bangladesh to the United States, its largest export destination, experienced a notable downturn, declining by 19.24% to $1.18 billion in the initial two months of 2024, as reported by the Office of Textiles and Apparel (OTEXA) under the American Commerce Department.
The overall shipments of textiles and garments collectively slipped by 18.88%, amounting to $1.21 billion during the same period.
Exporters attribute this decline to reduced imports by US clothing retailers and brands over the past two years, primarily due to excess inventories amid decreased consumption amidst the peak of the coronavirus pandemic.
However, there has been a gradual recovery since November, buoyed by forecasts of a robust economic rebound following potential interest rate adjustments by the Federal Reserve and a declining inflation trend.
Bangladesh holds the third position among all garment-exporting nations to the US, trailing China and Vietnam, yet it remains the leading denim exporter to the country. Its attractiveness as a sourcing destination for US clothing retailers and brands lies in competitive pricing and efficient order execution capabilities, bolstering confidence among exporters.
The National Retail Federation (NRF), the prominent trade body for US retailers, projected a moderate increase in retail sales by 2.5% to 3.5% in 2024, reaching between $5.23 trillion and $5.28 trillion. This projection reflects the sustained resilience of consumers, propelling the American economy forward.
NRF President and CEO Matthew Shay emphasized, “The resilience of consumers continues to power the American economy, and we are confident there will be moderate but steady growth through the end of the year. Successful retailers offer consumers products and services when, where, and how they want to shop, at prices they are willing to pay.”
This forecast aligns with the 10-year pre-pandemic average annual sales growth of 3.6%. Non-store and online sales are expected to grow between 7% and 9% yearly, from $1.47 trillion to $1.50 trillion. NRF also anticipates full-year GDP growth of around 2.3 percent, supporting job growth, while inflation is projected to moderate to 2.2 percent year over year.