Both export earnings and remittance, two main pillars of the economy of Bangladesh, registered low growth in September.
In the export earnings, Bangladesh earned $3.9 billion in September of FY22-23, registering a low growth of 6.25% year-on-year (YoY), according to recent data by the Export Promotion Bureau (EPB).
During the same period last year, Bangladesh bagged $4.16 billion from export earnings.
The country’s export earnings witnessed low growth in September after a positive streak of 13 months since August last year.
The apparel sector, the highest earner of the export receipts, earned $3.16 billion in September, fetching a low YoY growth of 7.52%, which was $3.41 billion in the September of the last fiscal year, EPB data said.
Meanwhile, the remittance sent by the expatriates through legal channels dropped 24.42% in September compared to August.
The remittance inflow was recorded at $1.54 billion in September. In August, it was $2.03 billion.
The September figure is the lowest in the last seven months, according to a report published by Bangladesh Bank on Sunday.
Moreover, the YoY remittance influx also registered a negative growth of 10.84% from $1.72 billion in September of FY21-22.
Speaking to the media, Zahid Hussain, lead economist consultant for World Bank said that he was a bit puzzled while looking for the exact reason for the sudden drops in remittances and said it may be for fixing the different rates of the dollar has had a big impact on it.
Mohiuddin Rubel, director of the BGMEA told media that they already shared early indications of growth slowdown from September onwards which is apparently reflected in export data for September.
They also said that the global retail market is disrupted by many challenges starting from post covid container freight and supply chain crisis, raw materials price hike, and then anticipated recession in the global economy which is halting retail sales and demand for clothing.