Bangladesh garment exports post sluggish growth

11 Jun '12

2 min read

Apparel exports from Bangladesh have registered a sluggish 7 percent year-on-year growth during the first eleven months of the current Bangladeshi fiscal that began on July 1, 2011, according to the latest data.

Bangladesh exported apparels worth US$ 21.98 billion during July-May period of fiscal 2011-12.

Woven garment exports from the country grossed US$ 8.70 billion during the eleven-month period, showing a 15.73 percent year-on-year growth, compared to about 40.52 percent rise in woven apparel exports registered during the same period of fiscal 2010-11.

Showing a meager 1.5 percent rise, exports of knitwear products from Bangladesh earned US$ 8.57 billion during the period under review. Knitwear exports grew by around 47 percent during the corresponding period of the previous fiscal.

Apparel producers attribute the decrease in export growth rate to financial crisis in Western countries, as majority of their shipments were destined to these countries.

They add that the gas and electricity crisis also partially contributed to the slow growth, as manufacturers were unable to make full use of their production capacity owing to energy shortages, which caused delay or cancellation of shipments.

According to BGMEA, the lower price of raw materials needed for the apparel industry led to a decrease in unit price of garments, which was also responsible for reduced export earnings.

Fibre2fashion Newsdesk - India

More Apparel/Garments News - Bangladesh...