In the second quarter, spanning Oct-Dec‘24, Bangladesh's RMG sector exports recorded a marginal increase, as outlined in the ‘Quarterly Review on RMG: October-December of FY24’ released by the Bangladesh Bank.
During this period, the import value of essential raw materials for garment production, including raw cotton, synthetic/viscose fiber, yarn, and textile fabrics, amounted to $3,373.29 million, representing 28.65 per cent of the total RMG export earnings, which stood at $11,773.84 million.
Consequently, the net exports from the RMG sector reached $8,400.56 million in Q2 FY24, constituting 71.35 per cent of the total exports for Oct-Dec’24.
Comparatively, the preceding quarter spanning July-Sept’24 recorded net exports of 70.78 per cent, reflecting a modest increase of 0.57 percentage points over three months. However, the growth was limited, with only a 2.16 per cent rise from the previous quarter and a 2.45 per cent decrease compared to the same period in the FY23, which saw net exports at $8,611.93 million.
The data also indicates that total RMG export earnings for Oct-Dec’24, encompassing both woven and knitwear products, amounted to $11,773.84 million, marking a slight 1.35 per cent increase from the previous quarter but a notable 7.46 per cent decline from the corresponding quarter of the previous fiscal year.
Various challenges, including the Russia-Ukraine conflict, currency depreciation, subdued global demand, and inflationary pressures, have contributed to a marginal decline in exports during this quarter, according to the central bank.
The report highlights the United States, Germany, the United Kingdom, France, Spain, Italy, the Netherlands, Canada, and Belgium as key destinations for Bangladesh's RMG exports. In Oct-Dec’24, these nine countries accounted for $7,954.77 million of RMG export earnings, representing nearly 68 per cent of total exports.
However, RMG export earnings from these countries declined by 1.87 per cent compared to the previous quarter and 11.81 per cent compared to the corresponding quarter of the previous fiscal year.
Looking ahead, the central bank cautions that the RMG sector may face further challenges due to global economic uncertainties. To mitigate these challenges, the government and Bangladesh Bank have implemented various initiatives, including pre-shipment credit, export incentives, and funds for export development and green transformation.
The report emphasises the need for inter-apparel diversification, reduced lead times, enhanced efficiency, research and development, exploration of new markets, skilled workforce development, and modernisation of production processes to boost RMG export earnings in the future.
In the previous fiscal year (2022-23), Bangladesh achieved RMG exports worth $46.99 billion, underscoring the sector's significant contribution to the country's economy.
