Bangladesh retained its position as the second-largest garment exporter to the European Union (EU), though its apparel exports to the bloc declined by 3.53% in the January-August period of 2023, totaling $12.90 billion. This drop is attributed to political turmoil, labor unrest, and high inflationary pressures in the EU, which saw overall garment imports fall by 3.63%.
China, the top exporter, saw its exports to the EU fall by 4.10%, while Turkey and India, ranked third and fourth respectively, also experienced declines. Conversely, Cambodia and Pakistan saw increases in their EU exports, with Cambodia’s rising by 12.78%.
Bangladesh’s garment sector faced significant challenges from political upheavals and labor unrest, leading to production losses of $400 million and delayed shipments. The turmoil, which began in July and escalated with political changes in August, caused order cancellations and postponed visits from international brands.
Despite these challenges, Bangladesh’s focus on high value-added garments and the shifting of orders from China to Bangladesh has supported its continued growth in the EU market. However, the EU market itself has been impacted by high inflation stemming from the aftermath of the pandemic and the Russia-Ukraine war, affecting consumer purchasing power.
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