Bangladesh’s apparel exports to the European Union (EU) saw a 3.1% growth in August 2024, reaching €1.6 billion, driven by higher exports of knitwear and woven garments compared to last year.

Breakdown of August 2024 Growth:

• Knitwear Exports:
  • Knitwear exports rose by 1.4%, totaling €1 billion in August 2024, compared to €986 million in August 2023.
• Woven Garment Exports:
  • Woven garment exports experienced even stronger growth, rising by 6.2% to reach €602 million, up from €567 million in August 2023.

The overall export increase is attributed to a steady rise in EU imports. However, this growth stands in contrast to July 2024, when Bangladesh’s apparel exports to the EU dropped by 2.7%, totaling €1.56 billion. Knitwear exports in particular declined in July, with exports falling by €48.17 million year-on-year.

Comparison with Other Apparel Exporters to the EU:

• China: The world’s largest apparel exporter, China, saw its exports to the EU grow by 11% in August 2024, rising from €2.67 billion in August 2023 to €2.96 billion.
• Turkey: The third-largest apparel exporter, Turkey, saw its exports fall by 1.7%, from €873 million in August 2023 to €857 million in August 2024.

Year-to-Date Performance (January-August 2024):

Despite the solid performance in August, Bangladesh’s total apparel exports to the EU for the first eight months of 2024 declined:

• Total Apparel Exports: From January to August 2024, Bangladesh’s apparel exports dropped by 3.51% to €11.90 billion, compared to €12.34 billion in the same period of 2023.
• Knitwear: Knitwear exports during this period experienced a 6.51% decline, falling to €6.97 billion.
• Woven Garments: Woven garment exports, however, showed a slight increase of 1.05%, reaching €4.94 billion.

EU Apparel Imports:

Bangladesh’s overall performance in the EU market reflects broader trends, as the EU’s total apparel imports during the January-August 2024 period decreased by 3.62%, totaling €54.69 billion, compared to €56.74 billion in the same period of 2023.

Comments from Industry Experts:

Mohiuddin Rubel, former board director of the BGMEA (Bangladesh Garment Manufacturers and Exporters Association), expressed optimism about future growth despite recent fluctuations. He noted, “Bangladesh is performing well, especially as our major market, Germany, is doing better. Additionally, the overall EU economy is improving, which has increased the demand for apparel.”

Rubel also pointed out that forecasts from major buyers remain positive, and the interim government’s proactive stance on boosting exports to the EU and the USA further strengthens Bangladesh’s outlook in the sector. He emphasized that “if the government can ensure a steady supply of utilities and maintain security, apparel exports will improve in the near future.”

Performance of Other Major Apparel Suppliers to the EU:

Data from Eurostat indicates that Bangladesh is not alone in facing challenges in the EU market. Most of the EU’s major apparel suppliers, except Pakistan, registered negative growth during the January-August 2024 period:

• China: Despite its August growth, China’s exports during the first eight months of 2024 declined by 4.11%, falling to €14.39 billion.
• Turkey: Turkey’s exports to the EU dropped by 7.51%, totaling €6.31 billion in this period.
• India: Apparel exports from India to the EU fell by 2.67%, reaching €3.08 billion.
• Vietnam: Vietnam also experienced a 2.11% decline in exports, with figures dropping from €2.50 billion in 2023 to €2.44 billion in 2024.

Pakistan’s Contrasting Growth:

Pakistan was the only major apparel supplier to the EU that bucked the overall trend of decline. From January to August 2024, Pakistan’s apparel exports to the EU increased by 7.31%, reaching €2.24 billion, up from €2.09 billion during the same period in 2023.

Conclusion:

While Bangladesh’s apparel sector showed signs of recovery in August 2024, the overall year-to-date figures highlight some challenges, including the effects of fluctuating demand and global competition. However, optimism remains high, with both government initiatives and improving economic conditions in the EU expected to support further growth in the coming months.

Source: The Business Standard