Bangladesh exports fall for the first time in 14 months

Exporters shipped goods worth $3.9 billion in September, falling short of the target, as global economic headwinds intensify

For the first time in Bangladesh, a consignment of garments produced in the country is shipped from Mongla port, opening a new avenue for the export sector. The Maersk Nesna, a ship bearing t

Bangladesh's exports dropped 6.25 percent year-on-year in September, the first decline in 14 months, as the global economic headwinds intensified.

Goods worth $3.9 billion were shipped out of the country last month, 7.02 percent short of the target, according to data released by the Export Promotion Bureau on Sunday.

Buoyed by last fiscal year's earnings of $52 billion, the government has set a target of $58 billion in export receipts for fiscal 2022-23.

Despite the lingering effects of the coronavirus pandemic on global trade, along with the fallout from the war in Ukraine, Bangladesh managed to navigate the hurdles and maintain an upward trend for exports in the first two months of the current fiscal year.

Garments once again accounted for the bulk of Bangladesh's export bills in September, along with manufactured commodities. But it was not enough to prevent a negative growth in exports overall, compared with the same period last month, amid a slowdown in global demand as spiralling inflation prompts a monetary tightening by central banks.

Industry insiders had also warned about a decline in garment exports due to inflation in Europe and America, two of Bangladesh’s top garment export markets.

In the first quarter of FY23, readymade garment exports reached $10.27 billion, which is 13.41 percent higher than the same time last year. However, exports of knitwear declined 9 percent and woven garments 5.66 percent in September.

Mohiuddin Rubel, director of BGMEA, said, “The BGMEA has already expressed fears of a slowdown in growth from September and this is clearly reflected in the latest export figures.

"The post-COVID global retail market is being affected by various crises. In particular, container shortages and supply chain crises, rising prices of raw materials and forecasts of a global recession have led to a collapse in retail sales. Consumer demand for clothing is on the decline.”