Bangladesh’s export landscape presents a mixed picture, while December 2023 showcased the highest monthly export earnings at $5.30 billion
In December 2023, Bangladesh’s exports reached $5.30 billion. It marked the highest single-month earnings for the year. However, the figure was 5.57% below the target set at $5.62 billion. The apparel sector, a key contributor to export receipts, saw a to $4.56 billion in December 2023. During the first half of fiscal year 2024 (July-December), overall exports grew by a mere 0.84% to $27.54 billion, slightly exceeding the $27.31 billion recorded in the same period of the previous fiscal year. Despite this, the overall export target of $30.11 billion was not met, with an 8.55% gap between the target and achieved earnings. Notably, the Ready-Made Garment (RMG) sector experienced a positive growth of 3.67% in 2023, reaching $47.39 billion, up from $45.71 billion in 2022. Although the sector faced fluctuations throughout the year, it managed to achieve a slight overall growth.
Despite global economic uncertainties, Bangladesh’s export performance, especially in the RMG sector, remained resilient, contributing significantly to the country’s overall export earnings of $55.56 billion in fiscal year 2023, reflecting a narrow 6.67% year-on-year growth.
However, except for the positive growth of the RMG sector, export earnings from all the major sectors like leather and leather goods, home textiles, etc also witnessed a positive growth in the first half of FY24.
Export Growth Overview
Before this, the Export Promotion Bureau (EPB) issued an updated report on December 5, 2023, revealing a 1.30 percent increase in Bangladesh’s goods exports to the global market in the first five months of the current fiscal year compared to the corresponding period last year. Between July and November of the fiscal year 2023-24, Bangladesh recorded exports totaling $22.8 billion, surpassing the $21.95 billion value reported in the same period of the previous fiscal year. The export growth figures disclosed by EPB for the initial five months of the past 10 financial years highlight a 0.92 percent growth in the corresponding period of the 2014-15 financial year and a negative 7.59 percent during the 2019-20 financial year. Subsequent financial years saw a 0.93 percent growth and, in the current financial year, a 1.3 percent increase in the monetary value of product exports during the same period.
This report, sourced from data provided by the National Board of Revenue (NBR), is regularly released by the organization under the Ministry of Commerce. The top five exported products from Bangladesh, based on value, include apparel, leather and leather products, agricultural products, jute and jute products, and home textiles.
Bangladesh’s Top Export Products
The five highest-value goods exported from Bangladesh are;
- Apparel
- Leather and leather products
- Agricultural items
- Jute and jute products and
- Home textiles
According to statistics, these five products accounted for 91.5 percent of overall exports in the first five months of fiscal year 2022-23.
Apparel Products
As of December 5, 2023, the EPB report reveals that garments make up 84.72 percent of Bangladesh’s total exports. The significance of Bangladesh’s textile and garment industry in the national economy is paramount, holding a prominent position in the global textile and apparel market. In the fiscal year 2021-2022, Bangladesh’s garment exports reached US $42.613 billion, solidifying its position as the world’s second-largest apparel exporter, as per Export Promotion Bureau data.
The United States serves as the primary destination for Bangladeshi garments, accounting for around 21.50% of total exports. Following closely is the European Union, including Spain, Germany, Italy, France, Belgium, and the Netherlands, ranking as the second-largest export destination for BD apparel, trailed by the UK and Canada.
According to BGMEA, Bangladesh’s textile and apparel sector is anticipated to experience further growth, projected to surpass 10% of the world market by 2025. This expansion is expected to be supported by global efforts to diversify supply chains, reflecting the evolving landscape of global sourcing practices.
Leather and leather products
The Leather and Leather Goods sector plays a vital role as the second-largest earner of foreign exchange for the nation. With around 600,000 people directly employed and an additional 300,000 in indirect roles, it stands as a significant contributor to employment.
Constituting 4% of Bangladesh’s total exports and contributing 0.5% to the overall GDP, the industry has been identified as a high-priority sector due to its considerable value addition, growth potential, and job opportunities. Bangladesh commands a 3% share of the worldwide market for leather and related products.
Agricultural Products
In recent years, Bangladesh has made remarkable progress in its agricultural sector, capitalizing on its fertile land, favorable climate, and effective government policies. This has led to extensive opportunities for agri-business, positioning the country to boost its agri-export earnings significantly. With a rising global demand for top-notch agricultural products, Bangladesh is poised to further strengthen its position in the international market. Notably, the country’s agri-food exports have surpassed $1 billion, expanding into diverse markets worldwide.
Bangladesh currently ships out more than 700 items, including 63 key agro-processed products such as cereal grains, frozen fish, processed meat, tea, vegetables, tobacco, cut flowers, fruits, spices, dry food, livestock, poultry, and fish feed, reaching over 140 countries. The agricultural sector is a major employer, engaging around 40.6% of the workforce and contributing 14.23% to the GDP.
At present, the agro-food processing industry plays a significant role, making a noteworthy contribution of about 1.7% to the GDP and creating employment opportunities for approximately 250,000 individuals. Its share in total exports is approximately 3.5%.
Jute and Jute Products
The sector’s export earnings increased by 3% in fiscal year 2023-24, reaching $63 million. According to the Export Promotion Bureau, jute and jute goods exports fell 19% year on year to $912 million in the fiscal year 2022-23, the second straight year of loss.
Home Textiles Products
During the 1980s, Bangladesh initiated its journey into the realm of home textile production, garnering an initial export revenue of $150 million in the fiscal year 2004-05. Presently, the market has experienced an extraordinary surge, reaching a remarkable $1 billion, establishing itself as a lucrative pathway toward achieving the government’s ambitious goal of $100 billion in exports.
Conclusion
Bangladesh’s export landscape presents a mixed picture. While December 2023 showcased the highest monthly earnings at $5.30 billion, a 5.57% gap from the $5.62 billion target indicates challenges. The Ready-Made Garment sector’s positive growth contrasts with overall export targets, reflecting resilience amid global uncertainties. The nation’s top exports, including apparel, leather, agricultural products, jute, and home textiles, remain pivotal. The continuous growth in agri-food exports and the ambitious targets in the textile and apparel sectors suggest a promising trajectory, emphasizing the country’s strategic positioning in the global market.
