Bangladesh's apparel sector saw a 2.88% growth in export earnings for July 2024, with revenue totaling $3.18 billion, compared to $3 billion in July 2023.
The overall export earnings for the country also grew by 2.9%, reaching $3.82 billion in July, up from $3.71 billion in the same period last year, according to Bangladesh Bank data.
Exports from woven products rose by 3.9% to $1.44 billion, while knitwear product exports increased by 2% to $1.72 billion.
Abdullah Hill Rakib, Acting President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), described the growth as a positive start to the fiscal year but expressed concern over labour unrest that lasted for three weeks.
"Production has been disrupted for over 20 days in Savar and Ashulia due to labour protests, leading to delays in shipments," Rakib said. Exporters have been forced to use air transport, which adds significant costs, he added.
“We have to wait to comment on the future direction of export growth,” he said.
Fazle Shamim Ehsan, Executive President of the BKMEA, shared similar concerns. "We are worried about work orders for the next season due to the recent labour unrest and political instability. Buyers are becoming hesitant," he said.
He called on the government to ensure security to maintain export growth otherwise the buyers may switch to other countries if labour unrest persists.
Khondkar Golam Moazzem, Research Director of the Center for Policy Dialogue, remarked, "The export growth in July is sluggish, and more is needed to meet the annual targets. Global factors, rather than domestic ones, are largely to blame for the slowdown. High inflation in the US and Europe has weakened consumer purchasing power, reducing demand for our products."
He added that domestic issues are also affecting production. "The weak law and order situation, coupled with labour unrest, is creating uncertainty about the smooth operation of industrial activities in the short term."
Moazzem stressed the need for a swift resolution to the law and order situation and the labor unrest. "Without these, achieving double-digit export growth will be challenging."
In addition to the garment sector, the export of agricultural products grew by 11.2% in July, reaching $80.2 million.
Plastic products saw an 18.7% rise, generating $20 million in revenue. The leather and leather goods sector grew by 4.5%, while jute and jute products declined by 16%.
The specialised textile sector saw a significant boost, with exports rising by 31.7%, bringing in $26.6 million.