Exports of ready-made garments (RMGs) from Bangladesh to the European Union (EU) increased significantly in September 2024, increasing 6.9 per cent year over year to US $ 1.62 billion from US $ 1.51 billion the year before. The knitwear industry was the main driver of the growth, whilst woven clothing saw more moderate increases.
Despite this encouraging September trend, Bangladesh’s total garment exports to the EU fell 2.47 per cent in the first nine months of 2024, reaching US $ 14.18 billion as opposed to US $ 14.54 billion during the same period the previous year. Significant drops in the first few months of the year, especially in January, February, and March, are to blame for this downturn.
According to Eurostat data, the EU’s imports of clothing decreased by 2.28 per cent to US $ 66.36 billion in the first three quarters of 2024 from US $ 68.05 billion the year before. Exports to the EU increased negatively in the most of major supplier nations, with the exception of Pakistan.
The Bangladesh Knitwear Manufacturers and Exporters Association’s former president, Fazlul Hoque, noted that the country’s high manufacturing costs—which are caused by growing utility rates, insufficient gas supplies, and recent pay increases—make it difficult for Bangladesh to meet international demand. Although orders have been placed recently, he pointed out that price concerns continue to be a major barrier for purchasers from other countries.
Additionally, because of stability worries brought on by labour unrest, buyers are reluctant to procure from industrial zones like Ashulia and Gazipur.
Exports of woven clothing rose 1.50 per cent to US $ 5.8 billion between January and September 2024, despite the general drop in export revenue. Exports of knitwear, meanwhile, fell 5.04 per cent to US $ 8.37 billion.
According to monthly patterns, there were some variations in Bangladesh’s exports of clothing to the EU in 2024. The second quarter saw a strong comeback following a sharp 34.03 per cent decrease in January, followed by drops of 18.33 per cent in February and 8.12 per cent in March. In April, exports increased by 29.80 per cent to US $ 1.85 billion, and in May, they increased by 20.74 per cent to US $ 1.68 billion. Exports dipped slightly in June and July but rebounded in August with a 3.87 per cent increase to US $ 1.7 billion.
