US-Germany-India Bound Export Drops: EPB

Exports to the two largest destinations -- the US and Germany -- have decreased by 1.52 per cent and 6 per cent respectively in the first quarter of 2023-24 fiscal, according to data from the Export Promotion Bureau.

Moreover, exports to the emerging destination -- neighboring India have decreased by 11.23 per cent. Except RMG, exports in all major sectors have decreased.

Bangladesh, however, achieved around 9.50 per cent growth in exports in the first quarter of the current fiscal.

The exporters are worried over the decrease in export to the US, Germany and India amid the positive trend of export.

It is a matter of concern that exports in major sectors except RMG have decreased, they said adding that it is natural exports will decrease in the current global context.

Remittances and export earnings are two major sources of foreign exchange.

The country received USD 4.91 billion dollars in remittances in the first quarter of the current fiscal, which is 13 per cent less that the corresponding period of the last fiscal.

On the other hand, the country exported commodities worth USD 12.50 billion in the first quarter of the current fiscal, which is 9.51 per cent higher than the corresponding period of the previous fiscal.

According to EPB, some 74 per cent of export earnings has come from ten top countries. However, out of ten countries, exports have increased to seven countries. The countries are: Spain, UK, France, Netherlands, Italy, Japan and Canada.

The US is the largest market for Bangladeshi items for long. Around 17.50 per cent of the entire export was to the US market in the 2022-23 fiscal. The export volume stood at USD 9.70 billion. This amount is 6.88 per cent less than the previous year.

This negative trend continues in the first quarter of the current fiscal.

Goods worth USD 2.29 billion has been exported in the first three months of the current fiscal, which is 1.52 per cent less than the corresponding period of the last fiscal year.

Although the overall export to the US market has dropped, RMG export has increased. RMG was 87 per cent of total export to this market last year. The amount has increased to 90 per cent. Apparel worth USD 2.07 billion was exported in the first quarter, which is 2.77 per cent higher than the corresponding period of last year.

Meanwhile, exports to Germany, which is the second largest export destination, decreased by 6.73 per cent in the last fiscal. That continues in the first quarter of current fiscal.

Bangladeshi items worth USD 1534.5 million have been exported to the country, which is 5.99 per cent less than the corresponding period last year. Of the total exports to Germany, 94 per cent is apparels. Apparels worth USD 1.45 billion have been exported to this market in the first quarter, which is 4.41 per cent less than the corresponding period of the last year.

Home textile is the second top export item in this market. Home textiles worth USD 21.4 million have been exported in the first quarter of the current fiscal, which 36 per cent less than the corresponding period of the last year.

India appears as the emerging export market for Bangladeshi items a few years back.

Bangladeshi commodities worth USD 1 billion were exported to India in the fiscal year 2019-20. India is now sixth export destination for Bangladeshi items. Items worth USD 2129.4 million have been exported to India in the fiscal of 2022-23, which is 7 per cent higher than the last fiscal.

However, the export to this market has decreased in the first quarter of this fiscal. Commodities worth USD 540 million have been exported to India this time, which is 11.23 per cent less than the last year.

According to EPB data, apparels worth USD 11.62 billion have been exported in the first quarter of the current fiscal, which is 13 per cent higher than the corresponding period of the last fiscal.