Global economic slowdown combined with local production hurdles led to over 25 per cent decline in Bangladesh's apparel exports to its biggest export market, the United States in 2023.

Official figures from the Office of Textiles and Apparel (OTEXA) show, Bangladesh's RMG exports to the US dropped by 25.07 per cent to $7.28 billion in 2023 compared to the $9.72 billion earned in 2022.The volume of apparel imports by the US from Bangladesh dropped by 27.94 per cent to 2.25 billion sq m in 2023.

Faruque Hassan, Presiden , BGMEA, says, the decline in demand is due mainly to the negative effects of the Russia-Ukraine war, which has driven up inflation and interest rate. It has also resulted in high inventory levels and reduced work orders throughout last year, he adds. 

Fazlul Hoque, Former President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) adds, the decline can be attributed to a sluggish demand amid an internal economic crisis and high inflation in the US.

The volume of US’ overall apparel imports from across world also decreased by 22.05 per cent to $77.84 billion from $99.85 billion in 2022, according to OTEXA data.

As per OTEXA data, China's apparel exports to the US declined by 24.98 per cent to $16.31 billion in 2023. China's share in the US apparel market declined from 37.32 per cent in 2013 to 20.96 per cent in 2023.

Similarly, US apparel imports from Vietnam and India dwindled by 22.29 per cent and 21.42 per cent, respectively, reaching $14.17 billion and $4.46 billion in in 2023.