Bangladesh Exports Drop 4.34% In FY24 Due To RMG Decline
Bangladesh’s exports fell by 4.34% in FY24, totaling US$ 44.47 billion compared to US$ 46.49 billion in FY23, according to the Bangladesh Bank. This decline is primarily due to reduced shipments of ready-made garments (RMG), reflecting broader economic challenges.
The Export Promotion Bureau (EPB) has yet to release the full FY24 export data. In July, the EPB halted updates for three months to ensure accuracy after discrepancies were noted with the central bank’s balance of payments (BoP) data, which showed a US$ 14 billion gap.
The Bangladesh Bank reported a Free on Board (FoB) export value of US$ 40.8 billion for FY24, marking a nearly 6% decline from the previous year. A US$ 3.66 billion discrepancy between FoB data and overall export figures was noted due to different calculation methods.
Khandoker Rafiqul Islam, new president of the Bangladesh Garment Manufacturers and Exporters Association, said that exports to Europe and the US have declined. The slowdown, worsened by the Russia-Ukraine conflict, led to stockpiling and reduced orders.
Exports of woven garments fell 5.36% to US$ 16.86 billion, while knitwear, the largest export category, decreased 5.35% to US$ 19.26 billion. Despite this, Islam noted potential recovery if market conditions improve.
Among the top 10 export sectors, only agricultural products, chemicals, and plastics saw growth. Plastic exports experienced the highest growth, followed by agricultural items and chemicals. The temporary export of aromatic rice contributed to the rise in agricultural exports.
Home textile exports plummeted 24% to US$ 782 million, and leather and leather products dropped 12% to US$ 1.03 billion. The decrease in leather exports is linked to lower demand in Europe, though Japanese demand remains stable.
Arifur Rahman of ABC Leather Ltd. observed increased demand for cheaper artificial footwear compared to leather shoes, with the price gap contributing to this trend.
