Summary:
- Bangladesh’s exports surged nearly 13% to $24.55 billion in the first half of FY25, with RMG sector contributing $20 billion, accounting for 81% of total exports.
- December 2024 exports reached $4.7 billion, up from $3.42 billion last year, driven by Western holiday shopping including Christmas, Black Friday, and New Year.
- Export growth persisted despite earlier labor unrest challenges, marking fourth consecutive month of positive growth with factories now operating at full capacity.
- Industry leaders report strong order books through Q3 FY25, though Western buyers seek price reductions due to inflation concerns.
Bangladesh’s exports have surged nearly 13% in the first half of fiscal year 2025, reaching $24.55 billion compared to $21.74 billion in the same period last year, primarily driven by strong performance in the readymade garment (RMG) sector.
The country’s export earnings in December 2024 climbed to $4.7 billion, marking a significant increase from $3.42 billion in December 2023. The RMG sector, as the primary export earner, contributed $20 billion during the first half of FY25, representing over 81% of total export earnings.
This growth comes despite earlier challenges, including production disruptions caused by labor unrest in August and September. The positive trajectory marks the fourth consecutive month of export growth, with December showing a 7% year-on-year increase according to the National Board of Revenue (NBR).
“The growth in December exports was driven by Christmas Day, Black Friday, New Year, Thanksgiving, and Boxing Day in the Western world,” said Abdullah Hil Rakib, Team Group Managing Director and former BGMEA senior vice president. He noted that all six of their manufacturing units are currently operating at full capacity.
Industry leaders attribute this growth to two key factors: the recovery of major export destination economies and the stabilization of labor unrest in major industrial zones. This has led to the return of some orders that had previously shifted to other countries.
Tanvir Ahmed, managing director of Envoy Textiles, reported strong operational performance, with their textile mill running at 92% capacity in the first quarter. “We have booked full-capacity orders until the middle of February, and December also ran at 100% capacity,” he stated. However, he cautioned that Western buyers are attempting to reduce prices due to food inflation in their markets.
The positive export performance indicates a robust recovery for Bangladesh’s crucial RMG sector, which has shown resilience despite earlier challenges in 2024. The sector maintains strong projections for continued growth through the third quarter of the fiscal year, supporting the country’s economic outlook for 2025.
Source: TBS News
