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Bangladesh export earnings rebound to record $3.91b in July

Staff Correspondent | Published: 21:33, Aug 04,2020 | Updated: 21:47, Aug 04,2020

 
 

A file photo shows a worker sewing clothes at a garment factory on the outskirts of Dhaka. Bangladesh’s exports in July this year fetched $3.91 billion, the highest-ever earnings in a single month in the country’s history, due to an increased shipment of readymade garment products as global buyers reinstated their orders in view of improving situation of coronavirus pandemic. — New Age photo

Bangladesh’s exports in July this year fetched $3.91 billion, the highest-ever earnings in a single month in the country’s history, due to an increased shipment of readymade garment products as global buyers reinstated their orders in view of improving situation of coronavirus pandemic.

The export earnings in the first month of the current financial year of 2020-21 grew by 0.59 per cent or $23.06 million year-on-year from $3.88 billion in the same month of last fiscal year, according to the Export Promotion Bureau data.

The earnings achieved in July of FY19 were the previous monthly highest export income.

The data showed that the country’s export earnings rebounded in July this year after a six-month negative growth in a row since January this year.

Of the six months, export earnings experienced a drastic fall in last three months of FY20 as the coronavirus pandemic hit the sales of manufacturing goods and the global buyers cancelled or suspended import orders.

Experts and exporters observed that it was a good sign as the country’s export earnings rebounded in the first month of FY21 amid the pandemic but they were uncertain whether the trend would sustain or not.

They said that the earnings in July registered positive growth due to pre-Eid shipment rush and the growth in August might be negative.

Export earnings from the RMG sector in July, 2020 decreased by 1.98 per cent to $3.24 billion from $3.31 billion in the same month of 2019.

‘The earnings in the first month of the current fiscal indicate that export will rescue the economy of Bangladesh,’ Policy Research Institute of Bangladesh executive director Ahsan H Mansur told New Age on Tuesday.

He said that the recovery in knitwear export was found better than the woven due to the local supply of knit fabrics.

There was still disruption in export of woven garments as the country depended on imported woven fabrics, Ahsan said.

‘Still we are processing the orders placed before the pandemic and we have to wait for a few months to see whether the trend of July would sustain or not,’ he said.

Bangladesh Garment Manufacturers and Exporters Association’s acting president Mohammed Abdus Salam said that the export performance in July this year was encouraging and the pace of shipment might continue until mid-August.

He said that the shipment of RMG products increased in June and July as the western countries started opening their stores with demand for low and mid-end apparel items.

Salam said that global buyers reinstated most of their orders which were cancelled or put on hold due to the coronavirus pandemic.

Knitwear export in the first month of FY21 grew by 4.30 per cent to $1.75 billion from $1.67 billion in the same month of FY20.

Earnings from woven garments fell by 8.43 per cent to $1.49 billion in July of FY21 from $1.63 billion in the same month of last fiscal year.

Jute and jute goods exports in the first month of FY21 grew by 38.23 per cent to $103.51 million from $74.88 million in the same period of FY20.

Earnings from the home textile export in July this year grew by 42.25 per cent to $94.01 million from $66.09 million in the same month of last year.

Export earnings from agriculture products grew by 30.92 per cent to $101.06 million from $77.19 million.

Export earnings from leather and leather goods in July this year fell by 15.23 per cent to $89.94 million from $106.10 million in the same month of last year.

Export earnings from leather-footwear decreased by 17.53 per cent to $59.67 million while other leather products fetched $22.05 million with an 8.16-per cent negative growth in the period.

Export earnings from frozen and live fish increased by 2.21 per cent to $42.52 million while the shrimp export fell by 5.11 per cent to $31.73 million in the first month of FY21.

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