Exports exceed $5b for third straight month

After a surge in inward remittances, Bangladesh has achieved another milestone as its export earnings surpassed the $5 billion mark for three consecutive months.

The merchandise shipments hit $5.19 billion in February, marking a notable 12.04% year-on-year growth, according to data published by the Export Promotion Bureau (EPB) today.

This rise contrasts sharply with February last year, when export earnings dipped to $4.63 billion after three months of consistently exceeding the $5 billion mark.

The news of this upward trajectory in export earnings is not just a cause for celebration; it also holds substantial implications for Bangladesh's economic stability.

Industry insiders foresee that this boost will fortify the country's foreign exchange reserves and contribute to mitigating volatility in the dollar market.

EPB data show apparel exports grew by about 14% to reach $4.50 billion in February, a significant increase from $3.95 billion a year ago.

Knitwear exports saw approximately 15% growth, reaching $2.4 billion compared to $2.1 billion in the corresponding month of last year, while woven apparel shipment increased by about 12.83% to hit $2.08 billion, up from $1.84 billion.

EPB data say overall export earnings rose by over 3.71% to $38.45 billion in the first eight months of this fiscal year, compared to $37.07 billion in the corresponding period a year ago.

For apparel exports, the growth was over 4.77%, compared to $31.36 billion in the last fiscal year. However, woven garment exports experienced 0.26% negative growth, while knitwear saw 8.98% growth in the eight months leading up to February.

"In January and February, the apparel sector experienced growth in shipments that exceeded expectations," Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard.

"The industry has overcome some challenges during the last year, such as gas prices, wage hikes, and global slowdowns in apparel demand," he said, expressing hopes that the coming days will be better, as most brands have already cleared their inventory.

He elaborated that apparel stores enjoyed good sales during some festive events across the Western world, especially Black Friday, Christmas Day, Boxing Day, and Cyber Monday, which helped them clear their previous inventory during the festivals. "As a consequence of their sales growth in January and February, our export was better," said the BGMEA leader.

He mentioned that manufacturers are opting for high-value and new products with diversified fibre, which is aiding in achieving such growth. The use of non-cotton fibre in garment production in Bangladesh has increased to 29% from 25% over the last three years, he added.

The BGMEA president said, "We aim to increase the global market share of locally-made apparel to 12% from the existing 7.87% by utilising non-cotton fibre, as the prices of products made with man-made fibre are higher than those made with cotton."

However, he said uninterrupted gas supply remains a challenge for apparel manufacturers.

Hat-trick record with over $5 billion in earnings

During November to January of the last fiscal year, Bangladesh achieved the same hat-trick record of over $5 billion in export earnings.

In January this year, merchandise exports reached $5.72 billion, the highest in a single month so far. In December, the country earned $5.31 billion.

In November of the last fiscal year, the country's export earnings were $5.09 billion, while in December and January, earnings were $5.37 billion and $5.14 billion, respectively, according to the EPB.

Home textile back in business after 17 months

Among other major sectors, exports of home textile products posted a 9.9% year-on-year growth to $84.61 million in February this year, compared to $77 million a year ago.

According to the EPB, the sector's earnings have been experiencing year-on-year negative growth since September 2022.

Speaking with TBS, Rashed Mosharraf, executive director (home) of Zaber & Zubair Fabrics, said home textile shipments had declined following the economic slowdown caused by the Russia-Ukraine war.

"Besides, one of our major competitors, Pakistan, is also gaining an advantage over Bangladesh due to currency exchange rates," he added.

"Despite all the challenges, we are trying to shift some orders from other supplier countries like India and China, which have also received positive feedback," he said. "Considering the order situation in March onward, home textile exports will be better than the trends of the last six months."

He added that sales in the global market are also gradually improving.

Additionally, jute and jute goods, as well as engineering products, saw growth of 14.6% and 20.9%, respectively.

On the other hand, exports of leather products experienced a 14.8% year-on-year negative growth, amounting to $14.8 million in February, while agriculture products exports also witnessed a 4.3% negative growth, totalling $63.8 million.