A steady 17.72-percent growth to US$4.62 billion in December raised Bangladesh's merchandise-export earnings to $24.53 billion in the first six months (H1) of this fiscal, and exporters hope for a yet better tomorrow.
Export Promotion Bureau (EPB) data released Thursday showed the apparel performance provided the props as usual, for a lack of export and market diversification.
The earnings amounted to US$ 3.93 billion in December 2023.
Out of the total December earning, some 81 per cent or about US$3.77 billion was fetched by readymade garment (RMG) shipments while the rest US$856.98 million came from non-RMG goods, according to EPB data.
The official statistics reveal that the overall export trade during the first half (July to November) of the current fiscal year (FY 2024-25) grew 12.84 per cent to US$24.53 billion in a rise from $21.74 billion in the same period of last fiscal.
However, the new format of data processing devised through correction of past trade arithmetic didn't show the period's target.
The country's export earnings showed signs of a turned around onto a positive trajectory in July, the first month of FY25, with a meager 2.93-percent growth.
The growth sustained through the following months with earnings rising by 5.61 per cent in August, 15.43 per cent in September, 20.65 per cent in October and 15.63 per cent in November as the apparel sector provided the pivot despite myriad troubles shaking the industry at home and external foul winds.
Garment earnings recorded a growth of 13.28 per cent year on year to US$19.88 billion--$10.83 billion from knitwear and $9.05 billion from woven garments-during the six months of the current fiscal year.
The sector witnessed 2.89-percent growth in July, followed by 7.20 per cent in August, 14.61 per cent in September, 22.80 per cent in October and 16.25 per cent in November.
Meantime, home textiles recorded a 7.85-percent growth to fetch US$410.81 million during the July-December.
Asked about the performance, Faruque Hassan, the immediate-past president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the sector performed well despite significant challenges. Notwithstanding the headwinds, they could "sustain buyer confidence".
The industry has taken a number of measures like branding, product diversification, value addition and workplace-safety improvement, said Mr Hassan, also managing director of Giant Group.
Riding on the renovation deeds they look forward to a better year in 2025 as the global retail market is improving.
Managing Director of Plummy Fashions Ltd Fazlul Hoque, also a former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), also portrays a brighter business outlook. "With the improvement in global market, demands in the major markets like the European Union and the US are increasing too," he says.
Besides, he looks to spinoffs from uncertainty stemming from China-US trade wars as to whether the new US government would impose further duty on imports from its archrival, China, which lead buyers to place orders in other countries in a switch from China.
"As a result, work orders are also coming here in the country," he says, hoping that the trend might continue in the months ahead. But the question is how much we can take advantage of the global market improvement."
Exporters have stressed the need for improved law-and-order situation, uninterrupted gas supply, assistance from the banking sector, ease of customs procedures and a solution to on-again, off-again labour unrest. Labour-related challenges persist, with issues ranging from workers' rights to wages and there have been labour protests especially after the July-August uprising leading to a regime change in state power.
They say compliant factories have good flow of work orders while non-compliant ones' situation might not be the same. Export retention has been falling mainly because the cost of doing business has gone up significantly.
According to the EPB data, exports of jute and jute goods during the period under review amounted to $417.39 million, registering a fall of 8.11 per cent.
Earnings from agricultural items like vegetables, fruits and dry foods registered a growth of 9.31 per cent to $595.51 million during the last six months.
Export earnings from engineering products increased by 6.31 per cent to $250.07 million during the July-December period.
Frozen and live fish exports increased by 13.01 per cent to $245.71 million.
The country received $577.29 million from the export of leather and leather goods in July-December, registering a growth of 10.44 per cent.
Pharmaceutical exports fetched $114.42 million, registering a 12.11-percent growth.
Exports of footwear other than leather items also increased 39.10 per cent to $273.89 million.
The exports of plastic products posted a 29.72-percent growth, reaching $157.94 million.
Bangladesh in the last fiscal year bagged $44.46 billion in earnings from merchandise exports, again riding on readymade garments.
Economists say the overdependence on a single sector goes on as diversification of the export basket stayed stymied with the consequence of missed potential in different countries offering duty-free facilities to address gaping trade imbalances.
Munni_fe@yahoo.com