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Bangladesh’s readymade garment exports to the European Union in July-August of the current financial year 2021-22 fell by 3.39 per cent to $3.4 billion from $3.51 billion in the same period of FY 2020-21 as the economy of the bloc is yet to recover from the Covid fallout.
Exporters said that apparel exports to the major EU markets, including Germany, France, Italy and Poland, in the two months of FY22 posted a negative growth due to a slow recovery of the economies from the pandemic setback.
Economy of the United States has started showing its strength and export earnings from the market are rising but the exports to the United Kingdom and Canada are still struggling, they said.
Exporters said that the EU opened up its business later than the US did due to a pandemic situation.
They hoped that the export growth in the EU markets would rebound in the coming months thanks to an increased number of orders.
Apparel export to the US, the largest export destination for Bangladesh, in July-August of FY22 grew by 4.57 per cent to $1.17 billion from $1.12 billion in the same period of the past fiscal year, according to Export Promotion Bureau data.
RMG export to Germany, the second largest export destination for Bangladesh, in the two months of FY22 fell by 10.25 per cent to $910.97 million from $1.01 billion in the same period of FY21.
RMG export to France in July-August of FY22 declined by 14.83 per cent to $269.21 million from $316.11 million in the same period of the previous fiscal year.
Apparel export to Italy in the two months of FY22 fell by 12.08 per cent to $214.51 million from $243.99 million in the same period of FY21.
RMG export to Spain in July-August of FY22 increased by 18.41 per cent to $461.55 million from $389.78 million in the same period of FY21.
RMG export to the UK, the third largest export destination for Bangladesh, in the two months of FY22 fell by 0.71 per cent to $604.45 million from $608.75 million in the same period of FY21.
Apparel export to Canada in July-August of FY22 declined by 4.93 per cent to $191.61 million from $201.54 million in the same period of the previous fiscal year.
Md Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said that the recovery of business in the EU would take time as the pandemic restrictions in the economic bloc remained in place for a longer period than the US.
He said that Bangladesh started receiving an increased number of orders from the EU countries and the export growth would rebound in the zone in the coming months.
(NA)
