Bangladesh's apparel exports to the European Union (EU) declined by 12.69% in the first half of 2023, totaling 9.06 billion euros compared to 10.37 billion euros in the same period of 2022. This decline can be attributed to a reduction in clothing demand within the EU's 27-nation economic bloc due to high inflation.

Exporters noted that although inflation was beginning to subside, the import of apparel by the EU continued to exhibit a significant downward trend. 

Eurostat, the statistical office of the EU, provided data indicating that knitwear imports from Bangladesh for January to June 2023 decreased to 5.38 billion euros from the 6.40 billion euros recorded during the same period in 2022. Similarly, Bangladesh's woven garment exports to the EU for the first half of 2023 decreased to 3.68 billion euros from the previous year's 3.96 billion euros.

Faruque Hassan, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), commented that although inflation was easing in key export markets and economic indicators were stabilizing, apparel imports by the EU and the United States continued to decline significantly. 

He noted the challenge of forecasting the market and suggested a cautiously optimistic outlook for the remainder of 2023. He anticipated a potential dip in apparel and overall global trade compared to the previous year.

Overall, the decline in Bangladesh's apparel exports to the EU is a sign of the challenging economic conditions facing the global apparel trade. The headwinds of high inflation and a slowdown in economic growth are likely to continue to weigh on demand for apparel in the coming months.