Readymade garment (RMG) exports fetched the country 17.38 billion euros from the EU in 2023 in a 20.65-percent fall from the 2022 earnings of 21.91 billion euro, according to data from Eurostat--the statistical office of the European Union.
Exporters explain the why: high inflation and rising interest rates globally dampened consumer demand that created inventory glut in western buyers' retail stores and discouraged them from placing new orders.
They say the official data from importing countries reflected the real work-order situation here in Bangladesh for the year 2023.
Official figures from the Eurostat showed exports of both knitwear and woven wears to the EU in 2023 having declined. Knitwear subsector fetched 10.64 billion euros, down from 13.95 billion euro in 2022. Woven items earned 6.74 billion euros, against 7.95 billion euros in 2022.
The overall EU import of apparel in 2023 from the world at large also decreased, by 16.22 per cent to 83.19 billion euros, from 99.29 billion euros in 2022.
The EU trade data also showed two of Bangladesh's key competitors-- China and Turkey--also logged negative growth in export to the EU market in 2023, reflecting an overall dampened Western fashion appetite.
Germany is the single-largest market for Bangladesh's clothing export-and the shipments there, too, witnessed about 17-percent fall last year, says Md Shahidullah Azim, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
He explains that demand decreased due to wars, which had driven up inflation and interest rates and that resulted in apparel-inventory swelling.
"As a result, buyers placed reduced-rate work orders throughout the last year," he says.
The BGMEA leader, however, notes that retail sales in December improved following Christmas, leading to a decrease in inventory levels and hopes for a turnaround.
"Buyers have recently started making more queries and placing more work orders," he says, expressing hope for increased exports from April onwards.
The BGMEA leader regrets that they are not getting fair price despite recent wage hike as buyers' cost has also gone up due to the long transit time because of Red Sea crisis that has resulted in up to 30 days additional time to reach the destinations.
Echoing Mr Azim's anticipation, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Hoque linked the decline in shipments mostly to sluggish demand amid economic crisis over there.
He said the official data from the EU, and the US-where local RMG shipments also witnessed a 25-percent decline in 2023-- reflected their real situation.
Exporters said there were less work orders last year and many factories closed down at 05:00 pm and could not work overtime for shortage of work orders.
The BKMEA leader also opines that recently the work-order situation turns for the better which might be reflected in five to six months later.
Eurostat statistics show that China's apparel exports to the EU in 2023 amounted to 22.73 billion euros, accounting for a 21.54-percent decline.
Similarly, EU apparel imports from Turkey recorded a 13.23-percent decline to 9.93 billion euros in the calendar year.
Vietnam and India in 2023 experienced negative growth of 14.68 per cent and 13.12 per cent, respectively, reaching 3.78 billion and 4.03 billion euros.
Munni_fe@yahoo.com