Published in Dhaka Tribune on Wednesday, 8 March 2017
Export earnings fall 4.50% in February
Ibrahim Hossain
‘The slowdown in export earnings was also seen in our competitor countries, but we have a larger impact, which needs to be addressed’
Bangladesh export earnings have witnessed a 4.50% fall to $2.73 billion in February due to slow growth in apparel sector.
However, the export earnings have seen a 3.22% rise to $22.83 billion in the first eight months from July to February of the current fiscal year.
Export earnings are moving through ups and downs. Of the first eight months, negative growth dominated the first four months while it was in the positive territory in the remaining months.
Trade analysts and manufacturers attributed Brexit, US election and economic slowdown in the export destinations to the downswing in export earnings.
According to Export promotion Bureau (EPB) data released on Wednesday, the export earnings in February marked 4.50% fall to $2.73 billion. In February last year, Bangladesh export earnings stood at $2.85 billion.
On the other hand, Bangladesh earned $22.83 billion in July-February period of the current fiscal year which is 3.22% higher compared to $22.12 billion in the same period a year ago.
RMG sector, the lifeline of the export earnings, has observed slow growth in July-February period of the current fiscal year.
In the period, clothing products earned $18.63 billion, up only by 2.82%, compared to $18.12 billion in the same period a year ago.
Of the total amount, knitwear products fetched $9.08 billion, which is over 5% higher compared to $8.64 billion a year ago, while Woven garments earned $9.56 billion posting a 0.83% rise compared to $9.48 billion in the same period last year.
“Export growth slides due to economic slowdown in the export destinations, especially in the European Union countries,” Exporters Association of Bangladesh (EAB) president Abdus Salam Murshedy told the Dhaka Tribune.
Brexit and US election cast shadow on Bangladesh export earnings as importers went on a seesaw in placing orders fearing policy changes that may hurt import business, said Salam.
He added that slow growth in the RMG sector has caused downturn in overall export earnings which contribute about 82% to total export.
“Global demand for products, specially clothing items, has declined in line with ups and downs in US economy as well as its post-election impact – all casting shadow on Bangladesh’s export earnings,” Khondaker Golam Moazzem, research director of Centre for Policy Dialogue (CPD), told the Dhaka Tribune.
“The slowdown in export earnings was also seen in our competitor countries, but we have a larger impact, which needs to be addressed.”
On the other hand, policy support by the respective governments of the competitor countries make them strong in the global markets.
The rise in gas price and that of electricity is not expected anyhow, the EAB leader said, adding that production cost has already gone up by 17% due to the hike in utility service charges.
“We are struggling but our competitors are attaining a double-digit growth. The big challenges facing Bangladeshi manufacturers are devaluation of currency and remediation financing.”