As German economy foresees a shrink, Bangladesh's exports may reduce

24 May '22

1 min read

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As the German economy is at the risk of shrinking by 2 per cent this year if the Ukraine war escalates and an embargo on Russian coal, oil and gas leads to restrictions on power providers and the industry, Bangladesh’s export growth momentum in that country seen now may decelerate in future. Germany is the second largest export market of Bangladesh goods.

The Russia-Ukraine war that began on February 24 this year is likely to hit Bangladesh's export to Germany in the mid- and long-term, said diplomats, economists and business leaders, an English-language newspaper in Bangladesh reported.

Bangladesh ambassador to Germany Mohammad Mosharraf Hossain Bhuiyan told media that export of Bangladesh's goods, particularly readymade garments, may slowdown provided the Russia-Ukraine crisis lingers for a year.

German consumers will prefer meeting basic needs like food, medicine, fuel and housing and may reduce consumption of readymade garments, he cautioned.

Bilateral trade between Germany and Bangladesh amounts to over $7 billion, with Germany importing over $6 billion worth products, mostly textile.

Fibre2Fashion News Desk (DS)

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