Star Business Report
Wed Oct 23, 2024 12:00 AM Last update on: Wed Oct 23, 2024 02:17 AM
Political turmoil and labour unrest in Bangladesh took a toll on the country’s garment exports to the EU bloc. Photo: Rajib Raihan
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Political turmoil and labour unrest in Bangladesh took a toll on the country’s garment exports to the EU bloc. Photo: Rajib Raihan
Bangladesh retained second position in garment exports to the European Union (EU), but shipments of apparel from the South Asian country to the bloc declined 3.53 percent in the January-August period to $12.90 billion owing to political turmoil and labour unrest, according to data from the Eurostat.
High inflationary pressures on the European economy also had an impact, with exports from most major destinations trending downwards.
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Nations in the EU imported garment items totalling $59.32 billion in the eight months, registering a 3.63 percent decline.
Garment exports from China, the largest exporter of apparel items to the EU, declined by 4.10 percent to $15.62 billion in the same period, data showed.
Turkey secured third position, exporting apparel worth $6.84 billion, representing a 7.52 percent decline, while India was the fourth-largest exporter with shipments worth $3.33 billion, down 2.73 percent.
Although garment shipments from major exporting countries to the EU declined, exports from Cambodia increased by 12.78 percent to $2.51 billion.
Pakistan also performed well, registering a 7.32 percent increase to $2.43 billion. Another gainer was Morocco, which saw garment exports to the EU grow 6.09 percent to $2 billion.
Meanwhile, shipments from Sri Lanka declined 1.45 percent to $906.91 million and those from Indonesia declined 9.35 percent to $677.53 million.
Bangladesh’s garment exporters have been mired in crises, witnessing a tumultuous scenario in July, August, September and the first part of October.
This started with political upheaval and nationwide protests by students in July and culminated in the political changeover on August 5.
However, political and economic uncertainty as well as incidents of arson and extortion continued to cast a shadow over normal business operations.
The situation was exacerbated by spells of labour unrest in industrial belts since September, which caused production losses worth $400 million, according to data from the Bangladesh Garment Manufacturers and Exporters Association.
With the months-long turmoil impacting business operations, most exporters struggled to meet lead times and ship goods timely.
They also faced work order cancellations and saw factory visits by representatives of international clothing retailers and brands postponed.
A few work orders have been shifted away from the country as retailers and brands sought quick production.
At the same time, the EU market was affected by high inflationary pressures due to the severe fallouts of the Covid-19 pandemic and the Russia-Ukraine war.
As a result, the purchasing power of European consumers was eroded although economies in the Eurozone are gradually rebounding.
Bangladesh’s exports to the EU have been increasing because of a higher focus on high value-added garment items, with work orders shifting from China to Bangladesh.
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Publish date : 2024-10-22 13:21:00
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The post Garment exports to EU decline 3.53% in Jan-Aug first appeared on Love Europe.
Author : love-europe
Publish date : 2024-10-22 20:22:54
Copyright for syndicated content belongs to the linked Source.
