Export growth got stymied in the first half of the current fiscal with the rate tumbling to 0.84 per cent in US$27.54-billion turnover, for volatile global market and Bangladesh's limited product basket.
The overall July-December earnings in the fiscal year 2023-24 fell short of the target by 8.55 per cent, according to Export Promotion Bureau (EPB) data released Tuesday.
During the six-month period of fiscal 2022-23, the country earned US$27.31 billion.
The official data just available on the half-yearly final account of export receipts also showed single-month export earnings in December 2023 having fallen, for a third consecutive month since October, by 1.06 per cent year on year to US$5.30 billion. The figure was US$5.36 billion in December 2022.
November saw export earnings fall by 6.05 per cent year on year to US$4.78 billion in a slide drawn out into December-at a time when the country looks hard-up in foreign-exchange reserves.
The monthly turnover was worth US$5.09 billion in November 2022.
At the start of the climb-down, the earnings last October were US$3.76 billion in a 13.64-percent negative growth compared to US$4.35 billion earned in October 2022.
Out of the $5.30 billion December receipts from merchandise exports, readymade garments singly fetched $4.55 billion, yet down 2.35 per cent from the mark in same month in 2022.
In the wake ongoing dollar crisis, high inflation and weakening local- currency taka, the decline in export earnings comes as a further cause of concern for Bangladesh.
Asked about the trade situation, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Vice-president Fazlee Ehsan Shamim said the year 2023 was not a pleasant one although there was growth.
"Business was not good due to the fall in global demand because of the Russia-Ukraine war, which has fueled up inflation and interest rates to erode buyer affordability," he notes.
To curb inflation, advanced economies have increased bank-interest rates, thus limiting the purchasing power of consumers and demand for goods.
The BKMEA leader, however, holds the hope that the situation might improve in March onwards provided there aren't 'unseen' issues to subdue trade advances.
Explaining the reasons, he said Bangladesh mainly exports to the OECD countries and, according to OECD secretariat forecast, inflation and interest rates in the EU realms would decrease, which shows a silver lining on the horizons.
"Besides, buyers purchased less last year as they had huge inventory," Mr Shamim says, adding that their stock also comes near to an end.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Mohiuddin Rubel thinks considering the global economic and geopolitical crises, Bangladesh did fairly well.
"However, imports for our major markets declined as most of the advanced economies are struggling due to high inflation and impact on consumers due to monetary-policy measures taken to contain inflation," he says about the headwinds facing export on the external front.
The RMG exports fetched the country $23.39 billion-US$13.48 billion from knitwear and US$9.91 billion from woven garments-in the July-December period, marking a meager 1.72-percent growth.
On the downside, the home-textile sector experienced a decline of 38.48 per cent during July-December period of fiscal'24, with earnings amounting to $369.91 million.
According to EPB data, exports of jute and jute goods stood at $436.12 million, in a 10.24-percent dive.
Earnings from agricultural items like vegetables, fruits and dry foods also registered a growth of 2.28 per cent to $507.93 million during the first half.
Export earnings from engineering products decreased by 3.08 per cent to $253.05 million.
Earnings from export of frozen and live fishes decreased 12.68 per cent to $215.13 million in the same period. Pharmaceutical exports fetched $100.44 million in an 8.26-percent growth.
Bangladesh received $523.03 million from the export of leather and leather goods in July-December, in a negative growth of 17.93 per cent.
Export earnings from footwear other than leather items also decreased by 1.85 per cent to $246.15 million during the period.
The EPB data also show exports of plastic products having witnessed a 16.44-percent growth, reaching $116.64 million.
In a much-anticipated relief amid a forex crunch, Bangladesh in the last fiscal year bagged a record-high $55.55 billion in earnings from merchandise exports, riding on double-digit growth for readymade garments.
Munni_fe@yahoo.com