The garment industry, a key player in Bangladesh’s economy, is grappling with a concerning downturn in apparel exports to the United States, its largest market for manufactured clothing. Data from the Office of Textiles and Apparel (OTEXA) reveals a persistent decline, with a staggering 34.71% decrease in exports recorded in September alone, contributing to an overall 23.33% drop in the January to September period.
The latest report from OTEXA, providing insights up to September, indicates a notable shift in the market dynamics. According to the US Department of Commerce, Bangladesh witnessed a substantial decline in apparel exports, with a decrease from $7.54 billion to $5.78 billion during the January-September timeframe, translating to a $1.76 billion reduction in revenue.
In September specifically, the downward trajectory continued, with garment exports totaling $594.7 million, a significant dip from the $911 million recorded in the same month the previous year. This marked a substantial $316 million decline in income from clothing exports to the United States.
A closer look at the export trends for the first nine months of the year reveals a decline in seven out of those months, excluding January and July, when compared to the corresponding months in the previous year. Industry experts attribute this decline to the economic slowdown and increased inflation resulting from the Russia-Ukraine war, which has adversely affected the purchasing power of US consumers.
Exporters express concern that this challenging situation may persist for another three to four months before potential gradual improvements. The current economic conditions have significantly dampened the demand for ready-made garments, creating a negative ripple effect on the overall apparel export landscape for Bangladesh.”
