RMG exports post heavy growth in major markets in July-May

Compared with FY19, the growth still 10pc negative

Staff Correspondent | Published: 22:43, Jun 08,2021

 
 

A file photo shows workers sewing clothes at a garment factory on the outskirts of Dhaka. Bangladesh’s readymade garment exports to the major markets, including the United States, Germany and the United Kingdom, in the July-May period of the current financial year 2020-21 registered an encouraging growth despite the Covid pandemic.— New Age photo

Bangladesh’s readymade garment exports to the major markets, including the United States, Germany and the United Kingdom, in the July-May period of the current financial year 2020-21 registered an encouraging growth despite the Covid pandemic.

Exporters said that RMG exports started rebounding as the economy of the US and the EU was opening up but it would take time for the exports to reach the pre-pandemic status.

According to Export Promotion Bureau data, earnings from RMG exports to the US, the EU and Canada registered a double-digit growth in the 11 months of the FY21.

Apparel exports to the US, the largest destination for Bangladesh’s exports, in the July-May period of FY21 grew by 14 per cent to $5.34 billion from $4.68 billion in the same period of FY20.

Earnings from RMG export to the EU countries in the 11 months of FY21 increased by 11.78 per cent to $17.68 billion from $15.81 billion in the same period of FY20.

RMG exports to Canada in the July-May period of FY21 grew by 13.24 per cent to $891.10 million from $786.91 million in the previous fiscal year.

‘It is true that readymade garment export is rebounding but it will not be wise to compare the export growth in the 11 months of the current fiscal with that of FY20 as the business was almost halted in 2020 due to the pandemic,’ Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan told New Age.

He said that the export growth should be compared with the pre-pandemic period to understand the growth.

‘If we compare the export earnings in the 11 month of FY21 with that in the same period of FY19, the earnings is still 10 per cent negative,’ Faruque said.

He said that the export sector was recovering but the earnings in the 11 months of FY21 were still 7.15 per cent lower than the government-set target.

The EPB data showed that apparel export to Germany, the second largest export destination for Bangladesh, in the July-May period of FY21 stood at $5.12 billion with a 15.76-per cent growth from the earnings of $4.42 billion in the same period of FY20.

RMG export to the UK, the third largest export destination for Bangladesh, in the 11 months of FY21 grew by 7.19 per cent to $3.17 billion from $2.95 billion in the same period of FY20.

Apparel export to Spain in July-May period of FY21 grew by 3.71 per cent to $1.97 billion from $1.90 billion in the same period of FY20.

RMG export to France in the 11 months of FY21 grew by 13.53 per cent to $1.60 billion from $1.40 billion in the same period of FY20.

Readymade garment export to the Netherlands in July-May period of FY21 grew by 16 per cent to $938.06 million from $808.72 million in the same period of FY20.

RMG export to Denmark in the 11 months of FY21 grew by 33.20 per cent to $746.56 million from $560.48 million in the same period of FY20.

Apparel export to Poland in July-May period of FY21 grew by 26.64 per cent to $1.24 billion from $979.81 million in the same period of FY20.

RMG export to Italy in the 11 months of FY21 grew by 1.22 per cent to $1.10 billion from $1.08 billion in the same period of FY20.

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