Bangladesh surpassed China as the top garment shipper to European Union as retailers seek to diversify the sourcing base.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the exports from Bangladesh to the EU witnessed a decrease of 3.67 per cent, equivalent to approximately 11.84 million kg, reaching a total of around 310 million kg during the initial quarter of 2023.
In spite of the decrease, the EU witnessed a 3.9 per cent growth in imports from Bangladesh, amounting to US $ 5.6 billion. This growth was primarily driven by an increase in unit prices, attributed to the higher costs of raw materials, transportation, and other inputs.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), unit prices rose by an average of 7.86 per cent during January-March.
On the other hand, China experienced a significant decline in its exports to the EU, with a year-on-year decrease of 22.46 per cent or 65 million kgs, resulting in a total of 224.54 million kg for the quarter.
During the specified period, the EU experienced a decline in its global apparel imports, with a year-on-year decrease of 4.94 per cent, equivalent to approximately US $ 1.22 billion.
Specifically, clothing imports recorded a significant drop of 12.64 per cent, amounting to a decrease of 136.88 million kg.
Among the EU’s top ten apparel-sourcing countries, Bangladesh, India, and Vietnam exhibited positive growth in their shipments, showcasing a promising trend.
However, other countries within the top ten, including Turkey, Pakistan, Sri Lanka, and Morocco, experienced declines in their shipments to the EU.
