Political unrest, low demand impact Bangladesh's apparel exports in H1

According to Fibre2Fashion's market insight tool TexPro, Bangladesh exported apparel worth $10.388 billion to European nations. Its exports to North America amounted to $4.215 billion in the first six months of this year, representing 23.37 per cent of the total. The Asia-Pacific region was another significant market, where the country exported apparel worth $2.272 billion (12.60 per cent) during the same period. Exports to other regions were as follows: the Middle East ($684.505 million, 3.79 per cent), Central and South America ($378.278 million, 2.10 per cent), and Africa ($100.466 million, 0.56 per cent).

The country has been facing global headwinds due to slow purchasing from retailers and brands. Bangladesh’s apparel exports were recorded at $18.831 billion in the first half of last year. This figure has dropped by 4.20 per cent to $18.039 billion in the first six months of this year, according to TexPro.

The country experienced political unrest in the first week of July 2024. Trade sources have indicated that normalcy has not yet returned for trade and industrial activities. Suppliers are hesitant to send consignments to the country under the new regime, and there is a possibility of further declines in exports in the coming months due to the political unrest.

Bangladesh's apparel exports had peaked at $43.490 billion in 2022 when retailers and brands increased their purchasing after COVID-19. However, shipments fell by 20.58 per cent to $36.329 billion in 2023. The trend of sluggish demand has continued into the current year as well.

ALCHEMPro News Desk (KUL)