For the third consecutive quarter ending in September 2023, Bangladesh’s net export earnings from the shipment of readymade garments (RMG) constituted over 70 % of gross export receipts. In July-September of fiscal year 2023-24, the net export receipt of the RMG sector reached $8.2 billion, making up 70.78 % of the total gross export earnings of $11.61 billion during that period. This indicates an increasing trend, with net export earnings rising from 51.49 % in the same period of the previous fiscal year.
The expansion of the backward linkage industry, reducing the need for imported materials, has contributed to this positive trend, according to the Bangladesh Bank. The BB report highlighted the challenges faced by the RMG sector, including domestic political unrest, global geopolitical conflicts, energy price hikes, and cotton price fluctuations. Despite these challenges, the RMG sector contributed 10.35 % to Bangladesh’s gross domestic product.
The top destinations for Bangladesh’s apparel exports during this period were the United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium. Going forward, the central bank review anticipates challenges for apparel exports due to subdued economic activities, higher inflation, higher interest rates, geopolitical uncertainties, weak productivity growth, and a complex financial environment.
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