The growth rate of readymade garment (RMG) exports from Bangladesh would witness a slowdown in the current fiscal year 2011-12 (FY12) owing to financial crisis in several countries, according to experts.
Experts estimate the country's garment and knitwear exports to grow at less than 20 percent year-on-year in the current fiscal, compared to a record 42 percent year-on-year growth registered during the last fiscal.
They, however, add that the growth rate would remain positive as garment orders from the EU and the US, which together account for over 90 percent of Bangladesh garment exports, are encouraging in spite of the ongoing economic crisis in these countries.
During the first six months of the current fiscal (July-December 2011), Bangladesh's exports of woven items surged by 22.56 percent year-on-year to US$ 4.46 billion, while knitwear exports jumped 11.2 percent year-on-year to US$ 4.79 billion, as per the figures released by the Export Promotion Bureau (EPB).
The exports of woven and knitwear items had showed a growth of 40.79 percent year-on-year and 43.39 percent year-on-year respectively, during the corresponding period of last fiscal.
The exports of woven garments has seen a higher growth this year compared to knitwear, due to their increased demand in the EU countries as Bangladesh exports now fall under the Generalised System of Preferences (GSP) facility.
At the beginning of the current fiscal year in July 2011, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) had set the target for garment exports at US$ 20.29 billion. But, experts say, the country may not achieve that figure even though the garment exports this fiscal may be higher than last fiscal year's figure of US$ 17.9 billion.
Fibre2fashion News Desk - India
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