H1 export earning growth falls to 4.4pc as Dec disappoints

Staff Correspondent | Published: 22:23, Jan 04,2017

 
 

The country’s export earnings growth in the first half of the current financial year 2016-17 tumbled due to the negative earnings growth of the month of December.
Export earnings in the first half of the current financial year 2016-17 grew by 4.44 per cent to US$ 16.79 billion from US$ 16.08 billion from the same period of the FY16, according to the Export Promotion Bureau data released on Wednesday.
Country’s export earnings achieved 7.84 per cent growth in the first half of the FY 16.
Export earnings in the month of December fell by 3.03 per cent to US$ 3.10 billion from US$ 3.20 billion in the same month of the previous year.
The export earnings in the July-December period fell short of target by 3.28 per cent from US$ 17.36 billion set by the government.
Experts and exporters said that the slow demand in the international market and appreciation of Taka against dollar were the reasons for negative export growth in the month of December.
The EPB data showed that earnings from RMG export in the first half of FY17 grew by 4.37 per cent to US$ 13.70 billion from US$ 13.13 billion in the same period of FY16 and the earnings were still 3.85 per cent lower than the target of US$ 14.25 billion set by the government for the July-December period of FY17.
‘Export earnings growth declined in the first half of the current financial year due to a fall in earnings from the US market in the month of December,’ Mafruha Sultana, vice chairman of the EPB told New Age on Wednesday.
She said that the export earnings were still behind the target and the EPB would sit with the private sector to identify the reasons of slow growth.
Khondoker Golam Moazzem, additional research director at the Centre for Policy Dialogue, said that the export earnings in December witnessed a negative growth mainly due to slow consumption in the US market.
He said that appreciation of currency was another reason for negative growth.
‘It is true the unit price of products decreased in recent time but the prices of raw material also decreased on the global market,’ Moazzem said.
Export earnings from the woven sector in the first half grew by 2.87 per cent to US$ 6.89 billion compared with that of US$ 6.70 billion in the same period of FY16.
The earnings frim woven sector fell short of target by 9.36 per cent from US$ 7.60 billion set by the government.
The knitwear export in the July-December period of FY17 grew by 5.93 per cent to US$ 6.81 billion from US$ 6.43 billion in the same period of FY16.
Faruque Hassan, senior vice president of Bangladesh Garment Manufacturers and Exporters Association, said that the export earnings growth was affected by decreasing unit price of products, appreciation of currency, shortage of gas and shutdown of factories due to labour unrest.
Export earnings from jute and jute goods increased by 11.52 per cent in the first half of FY17 to US$ 472.57 million from US$ 423.74 million in the same period of FY16.
Export of agriculture products fell by 2.69 per cent to US$ 258.97 million from US$ 266.88 million and earnings from home textile export grew by 1.99 per cent to US$ 352.57 million from US$ 348.43 million.
According to the EPB data, exports of leather and leather products in the first half of FY17 grew by 11.93 per cent to US$ 627.86 million compared with that of US$ 560.92 million in the same period of FY16.
Earnings from leather-footwear exports increased by 12.43-per cent to US$ 283.37 million while leather products fetched US$ 209.33 million with 18.36 per cent growth in the period.
t the export earnings from engineering products in the July-December period of FY17 fell by 14.98 per cent to US$ 236.29 million from that of US$ 277.92 million posted in the same period of the previous fiscal year.
Exports of frozen and live fish in the first half of FY17 grew by 2.03 per cent to US$ 291.56 million from US$ 285.76 million in the same period of FY16.

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