Summary:
- Bangladesh’s garment exports grew by 18.6% year-on-year in October-December 2024, reaching $10.36 billion, despite labor unrest and global economic challenges.
- Knitwear exports increased by 2.61% to $5.48 billion, while woven garment exports surged by 17.23% to $4.88 billion due to rising demand in the U.S. and Europe.
- Major export markets, including the U.S., Germany, and the U.K., accounted for 70% of total exports, with revenue from these markets rising by 7.13% compared to the previous quarter.
- Challenges included inflation, supply chain disruptions, and rising raw material costs, with cotton and fabric imports totaling $4.03 billion, or 39% of export revenue.
Despite global economic challenges and domestic labor unrest following the fall of the Awami League government in August, Bangladesh’s garment sector has shown remarkable resilience, according to the latest report from Bangladesh Bank.
Garment exports from October to December of the current fiscal year reached $10.36 billion, reflecting a 9% increase compared to the previous quarter and an 18.6% growth year-on-year. The central bank attributes this growth to the recovery of Western economies, which has driven increased demand for apparel in key markets such as the United States and Europe.
“Bangladesh has established itself as one of the world’s leading garment manufacturers,” the report states, citing low labor costs and a robust supply chain as key factors behind the sector’s growth.
The report highlights that 70% of total garment exports during this period were destined for major markets, including the U.S., Germany, the U.K., Spain, France, the Netherlands, Italy, Canada, and Belgium. Revenue from these markets rose by 7.13% compared to the previous quarter.
Within the sector, knitwear exports grew by 2.61%, reaching $5.48 billion, while woven garment exports surged by 17.23%, totaling $4.88 billion. The increased demand in Europe and the U.S., where consumer spending on apparel has risen, played a significant role in these gains.
However, challenges persist for Bangladesh’s garment industry. The report notes that inflationary pressures, disrupted supply chains, volatile fuel prices, and higher transportation costs have posed significant hurdles. Additionally, rising raw material costs have impacted production; imports of cotton, synthetic yarns, and fabrics amounted to $4.03 billion, accounting for 39% of total garment export revenue during this period.
Labor unrest following last August’s political upheaval also disrupted production in several factories. Export activities were severely affected between July and October due to widespread worker protests stemming from economic grievances.
Despite these obstacles, Bangladesh’s garment sector remains a cornerstone of the national economy. In this quarter alone, it contributed 11.68% to GDP, underscoring its critical role in driving economic stability and growth.
Bangladesh Bank’s report concludes that improved global demand and enhanced production efficiency have contributed to the sector’s robust performance during this period. Net export earnings stood at $6.32 billion, marking a 12.67% increase from the previous quarter.
As Western economies continue their recovery, industry experts remain optimistic about sustained growth in Bangladesh’s garment exports in the coming months.
