Due to the global economic crisis, the exports of Bangladeshi garments products were reduced and the reduction was 21% in last one year. European Union (EU) is the largest garments products importer from Bangladesh, who in 2022, imported RMG products amounted to 2,191 crore Euros. However, in 2023, that amount reduced to 1,738 crore Euros, signifying a decline of 20.65 percent.
The above information was revealed from the report of Eurostat, the statistics wing of EU. However, according to the exporters, the demand from the consumers was declined due to high inflation and ever-increasing interest rate of Federal Reserve Bank. Hence, the stocks of garments clothes remain unfinished in the retail stores of the buyers of EU and they’re not purchasing new clothes.
According to the information of Eurostat, Bangladesh exported 1,334 crore kgs of RMG products to EU in 2022, which was reduced to 1,114 crore kgs in 2023. In 2023, knitwear of 1,064 crore were exported to EU, which were 1,395 crore of Euros in 2023. This decline from almost all the RMG products suppliers in Europe was occurred due to high inflation and economic instability caused as an aftermath of Russia-Ukraine war.
According to the Eurostat report, clothing exports to Europe from different countries in 2023 decreased by 16.22 percent to 8, 319 million euros, which in 2022 was 9, 929 million euros. Last year, garment exports from China to the European Union decreased by 21.54 percent to 2,273 million euros, which in 2022 was 2, 898 million euros. However, it’s worth mentioning that in 2022, Bangladesh's position as the highest garment exporter in the European market has remained unchanged, although China is the top garment exporter in terms of value as China exports expensive and diverse clothing. In 2023, China exported 1,110 million kgs of clothing products. Turkey's garment exports fell by 13.23 percent to 9.93 billion euros, which was 1, 145 million euros in 2022. In 2023, India's garment exports fell by 13.12 percent to 404 million euros compared to 2022. In 2022, India's exports were worth 4.65 billion Euros. In 2023, Vietnam exported clothes worth 378 million euros, which was 443 crore Euro in 2022. Similarly, exports from Cambodia decreased by 500 million dollars last year. In 2023, the country exported 3.2 billion euros worth of clothing, but in 2022 it was 3.7 billion euros. In 2022, Cambodia exported 3.79 billion euros of clothing, but in 2023 it decreased by 69 billion to 310 billion euros.
When asked about this, Bangladesh Garments Manufacturers and Exporters Association (BGMEA) Vice President SM Mannan Kochi told The Bangladesh Pratidin, “Interest rates and inflation have also increased due to the Russia-Ukraine war. Hence, the demand for clothing in the European market has decreased. As a result, buyers have placed fewer purchase orders throughout the last year. Bangladesh is at the top in exports in terms of quantity.”
SM Mannan Kochi also said China, Vietnam export high value and diverse garments. Bangladesh mainly exports basic garments, which brought us to the second position in terms of price. Apart from this, fair pricing is also an issue, as Bangladesh is deprived of getting fair price for clothes.
(The report was published on print and online versions of The Bangladesh Pratidin on February 23 and rewritten in English by Lutful Hoque Khan)
