Bangladesh’s export sector saw a significant boost in May, recording its highest total in nearly two years, according to data released by the Export Promotion Bureau (EPB). The country exported US $ 4.73 billion worth of goods in May, marking an 11.45 per cent increase from US $ 4.25 billion during the same month last year.
The surge was primarily fueled by increased shipments of manufactured commodities, especially apparel, as exporters capitalised on the upcoming Eid-ul-Azha festival. Apparel exports alone reached US $ 3.91 billion in May, the highest in 35 months, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The sector, which accounts for over 80 per cent of the country’s export earnings, experienced nearly 12 per cent year-on-year growth.
Overall, Bangladesh’s exports from July to May of FY ’25 totaled US $ 44.94 billion, a 10 per cent rise compared to the previous year, indicating a gradual economic recovery amidst ongoing challenges. The influx of remittances further supported this recovery, although the nation’s GDP growth for FY ’25 was modest at 3.97 per cent, the lowest since the COVID-19 pandemic year, due to sluggish performance in agriculture and services sectors.
Industry leaders expressed optimism about the current momentum. Mahmud Hasan Khan, president-elect of BGMEA, highlighted that work orders had improved, with some previously suspended contracts being reinstated. He cautioned, however, that ongoing tariff negotiations could impact future exports.
The garment sector’s performance was also supported by advance shipments ahead of Eid-ul-Azha, a major religious festival. Mohiuddin Rubel, additional managing director of Denim Expert Ltd, noted that the festive season significantly boosted export figures.
Leather and leather goods exports also experienced a remarkable increase, climbing 35 per cent year-on-year in May, with shipments of non-leather footwear rising 21 per cent. During the July-May period, leather and leather goods exports crossed the US $ 1 billion mark, reflecting a 12.55 per cent growth. Non-leather footwear exports approached half a billion dollars over the same timeframe.
Industry analysts, including Kazi Iqbal of the Bangladesh Institute of Development Studies, remain optimistic about the sector’s prospects. As Bangladesh continues to recover from recent economic stresses, the export sector’s performance remains a crucial driver of the country’s economic stability and growth.
