Export earnings witness strong growth in July

Staff Correspondent | Published: 22:02, Aug 09,2017

 
 

A file photo shows workers are busy at a readymade garment factory on the outskirts of Dhaka. Country’s export earnings in July, the first month of the current fiscal year 2017-18 witnessed a strong rebound overcoming the 14.94 per cent negative growth in June. — New Age photo

Country’s export earnings in July, the first month of the current fiscal year 2017-18 witnessed a strong rebound overcoming the 14.94 per cent negative growth in June, the last month of the just concluded FY 2016-17, mainly due to good order situation in the readymade garment sector. 
Country’s export earnings in the first month of FY 2017-18 grew by 26.54 per cent to $3.20 billion from $2.53 billion in the same month of the FY 17, according to the Export Promotion Bureau data released on Wednesday.
Experts and exporters said that the 26 per cent robust growth in export earnings in the first month of the financial year is positive for the country and the growth took place due to increased shipment of readymade garment products.
‘Though it is the first month of the financial year, I think the export earnings growth is positive,’ Centre for Policy Dialogue research director Khandaker Golam Moazzem told New Age.
He thought that there might be a positive trend of export orders behind the excellent export earnings growth in the first month of the FY 18.
Though the export earnings achieved 26.54 per cent growth on a lower benchmark as the earrings growth in the same month of the FY 17 and FY 16 were 3.49 per cent and 11.96 per cent negative respectively, Moazzem said.
He hoped that if the trend continues in coming months it will be very positive for the country.
The EPB data showed that the earnings from RMG products export in July of FY18 grew by 17.08 per cent to $2.48 billion from $2.11 billion in the same period of FY17.
Abdus Salam Murshedy, president of the Exporters Association of Bangladesh, said that amid continuous negative growth it was a good news for the RMG sector that it achieved double digit positive growth in July.
There were two main reasons for the growth– one, some of the seasonal goods shipped at a time in the month of July and second, orders increased as the capacity of Accord and Alliance approved factories increased, he said.
The export earnings from the knitwear sector in the month increased by 17.28 per cent to $1.26 billion compared with that of $1.07 billion in the same period of FY17.
The earnings from woven sector grew by 16.88 per cent to $1.21 billion from $1.04 billion.
Mahmud Hasan Khan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said that export witnessed double digit growth in the month of July as a good number of export consignments of the month of June, was shipped in the month of July due to vacation of Eid-ul-Fitr.
‘Export earnings growth could not be justified analysing the one month data but it is true that the order situation is good,’ he said.
He said that the export earnings growth would be satisfactory in the month of August, but it might decline in September due to vacation of Eid-ul-Azha.
According to the data, leather and leather product exports in the first month of FY18 grew by 26.19 per cent to $116.73 million compared with that of $92.50 million in the same period of FY17.
Earnings from leather footwear export in July of FY18 grew by 30 per cent to $64.61million from $49.70 million in the same period of FY17 while the earnings from leather products increased by 38.43 per cent to $38.54 million.
Frozen food and fish exports in July of FY18 grew by 57.32 per cent to $59.42 million from $37.77 million.
Earnings from jute and jute goods in the first month of FY18 declined by 7.51 per cent to $64.53 million from $69.77 million in the same period of FY17.
The EPB data showed that the export earnings from engineering products in July of FY18 grew by 702 per cent to $232.90 million from that of $29.04 million in the same period of FY17. 

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