Bangladesh's apparel exports to the European Union rose by 33.78 per cent to $1.82 billion in October, this year from $1.36 billion during the same month in 2023, according to data released by Eurostat, the EU's statistical office.
Exporters attributed this significant spike in exports to an accumulation of work orders from global buyers. However, they noted that the nearly 34 per cent increase in October appeared abnormal.
The surge was partly due to shipment delays caused by political instability and labor unrest in Bangladesh during July and August, which led to a backlog of orders being fulfilled in September and subsequently contributing to October's robust figures, reports Apparel Resource, a well reputed export oriented garments trading agent in Dhaka.
Despite the impressive growth in October, Bangladesh's readymade garment (RMG) exports to the EU faced major declines earlier in 2024. The sector saw a modest recovery beginning in August, with a 4.2 per cent increase, followed by a 7.4 per cent rise in September. Over the first ten months of 2024, however, total apparel exports to the EU showed limited growth of just 0.76 per cent, reaching US $ 15.79 billion, compared to US $ 15.67 billion during the same period in 2023. This stagnation was primarily attributed to substantial declines in the early months of the year.
Mahmud Hasan Khan Babu, former vice-president of the Bangladesh Garment Manufacturers and Exporters Association, remarked that while global buyers were increasing their orders to Bangladesh, the dramatic spike in October's exports seemed unusual. He emphasised that the backlog of shipments from previous months likely fueled the surge. Babu also expressed optimism regarding future business trends, stating that if the law and order situation improves, Bangladesh could expect an increase in global orders.
According to Eurostat data, overall apparel imports by the EU from various countries in the first ten months of 2024 decreased by 0.16 per cent, totaling US $ 74.27 billion compared to US $ 74.39 billion during the same period last year.
Other countries also reported varying trends in apparel exports to the EU. China's apparel exports grew slightly by 0.24 per cent to US $ 20.82 billion, while Turkey experienced a decline of 6.18 per cent to US $ 8.21 billion. India saw a marginal increase of 0.54 per cent to US $ 3.82 billion, and Vietnam reported a growth of 2.46 per cent to US $ 3.4 billion. Pakistan's apparel exports to the EU also rose significantly by 10.81 per cent to US $ 2.99 billion in the same timeframe.
