Garment exports to EU rise 12%

Bangladesh's garments exports to the European Union (EU) increased by 12.43 per cent year-on-year to $4.94 billion in the first three months of the ongoing fiscal, according to data from the Export Promotion Bureau (EPB).

Exports to Germany, the country's largest export market in the EU, grew by only 1.34 per cent to $1.52 billion in the July-September period while shipments to Spain and France showed 21.35 per cent and 36.72 per cent growth respectively.

On the other hand, exports to Poland, one of the most promising markets, fell 24.49 per cent compared to the July-September period of fiscal 2021-22, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said in a statement.

Garment exports to the US stood at $2.01 billion in the first three months of fiscal 2022-23 with 5.13 per cent year-on-year growth, indicating a clear deceleration.

At the same time, exports to the UK and Canada reached $1.19 billion and $334.65 million with 15.11 per cent and 17.40 per cent growth respectively, the BGMEA said.

Meanwhile, apparel exports to non-traditional markets grew by 25.47 per cent to $1.76 billion during this year's July-September period while it was $1.43 billion at the same time previous year.

Among the non-traditional markets, exports to Japan reached $320.40 million with 16.60 per cent growth while exports to India also increased significantly by 66.20 per cent to $306.39 million.

However, exports to China, the UAE, South Africa and Russia declined by 3.69 per cent, 0.13 per cent, 8.71 per cent and 47.30 per cent respectively at the same time.

It is clear from the data that growth is decelerating in major markets, including the US and Germany, due to the global economic turmoil and subsequent impact on retail markets, the BGMEA said.

Garment shipments slowed down in recent months mainly because of the Russia-Ukraine war, for which consumers in the Europe have been suffering from high inflation, it added.