(Photo : https://epb.gov.bd/)
Bangladesh's Export Boom: $16 Billion in Four Months

• Bangladesh's export sector has seen an 11% increase year on year, with earnings reaching nearly $16 billion in the first four months of the fiscal year 2024-25.
• The ready-made garment industry has significantly contributed to this growth, with an ambitious export target of $50 billion set for the fiscal year.
• The country has been attracting significant foreign investment, particularly from China, due to its reputation as a top supplier of apparel items.
• Despite the robust growth in exports, challenges remain, including a cost of living crisis and a drastic fall in the value of the local currency.

Bangladesh's export sector has seen a significant surge in the first four months of the current fiscal year 2024-25, with earnings reaching nearly $16 billion, marking an 11% increase year on year. This robust performance is largely attributed to the country's thriving ready-made knitwear and woven garment industry, which contributed over $3.3 billion to the total earnings, a rise of more than 22% compared to the same period last year.

The latest data from the Export Promotion Bureau (EPB) reveals that Bangladesh exported goods worth $4.13 billion in October alone, a figure that is more than 20% higher than the same month a year ago. This impressive growth in exports is a testament to the country's increasing prowess in the global export market, particularly in the ready-made garment sector.

The ready-made garment industry has been a significant contributor to Bangladesh's export earnings. The country has set an ambitious export target of $50 billion for the fiscal year 2024-25, with ready-made garment products expected to account for $40.48 billion of the total. This target, if achieved, would mark a significant milestone in the country's economic growth and development.

Bangladesh's Attraction for Foreign Investment

The rise in exports is not an isolated event but part of a broader trend of economic growth and development in Bangladesh. The country has been attracting significant foreign investment, particularly from China, due to its growing reputation as a top supplier of apparel items. Chinese textile and garment entrepreneurs are increasingly bullish about Bangladesh, as evidenced by a healthy flow of orders from international clothing retailers and brands.

The reliance on the second-biggest economy in the world is growing since local weavers can only meet 40 percent of the requirement for woven fabrics. The remaining 60 percent is met through imports, mainly from China and India. This has led to a surge in Chinese investment in the textile and garment sectors in Bangladesh, driven by the country's brighter economic outlook and the rising cost of production in China.

At the same time, Chinese fabric sellers are targeting export-oriented garment factories in Bangladesh, which have been receiving an increased volume of orders from global retailers and brands. This trend was evident at the 21st Dhaka International Yarn and Fabric Show 2024 and the 6th Denim Bangladesh 2024 International Expo, where a significant number of Chinese textile and garment manufacturers participated.

Challenges Amidst the Growth

However, it's not all smooth sailing for Bangladesh's economy. Despite the robust growth in exports, the country's earnings from remittances and exports have been lower than expected. This has had a direct impact on the foreign exchange reserves, leading to a cost of living crisis and a drastic fall in the value of the local currency. The lower receipts from exports and remittances are set to persist in the coming months, posing challenges for policymakers.

The earnings from the merchandise shipments rose marginally in 2023 owing to the persistently lower demand among western consumers amid high inflationary pressure, the dragging Russia-Ukraine war, and the outbreak of the Middle East crisis. The earnings declined 1.06 percent $5.30 billion in the last month of the year, according to the EPB. It, however, grew 0.84 percent to $27.54 billion in July-December, the first six months of the current financial year of 2023-24.