July-December export growth slows down
Tuesday, 10 January 2012
Monira Munni
The country's merchandise exports fell short of target by 11.15 per cent in last December, mainly due to the crisis in the eurozone.
Exports in December 2011, however, increased by 3.85 per cent to $2.06 billion over the corresponding period of last year.
Exports during July-December last stood at $11.77 billion marking a growth of 14.72 per cent while the growth during the corresponding period of previous year was 41 per cent, the Export Promotion Bureau (EPB) data revealed.
Earnings from knitwear in July-December last stood at $4.79 billion marking a growth of 11 per cent which was 43.39 per cent during the corresponding period of the previous year.
Shipment from woven garments stood at $4.45 billion during the first half of the current fiscal, marking a growth of 22.56 per cent while the growth was about 41 per cent in July-December of 2010-11 fiscal.
Exporters said the recent economic recession in European Union (EU) countries has been the main reason for such slow growth as most of the shipments are confined to this market.
"Export growth slowed down mainly because of the recession in the European Union," Vice-President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem told the FE.
Bangladesh was not badly affected by the recession of 2009 but it has now been hit hard by the present economic meltdown in the EU, he said adding orders drastically fell during last few months.
Moreover, the volatile cotton market also badly affected the sector, he explained.
Buyers were in a wait-and-watch mood, he said adding, though the flow of orders from them is increasing in recent times, it is not up to the desired level.
"We are in doubt whether the target of the current fiscal would be achieved," he said adding gas crisis is affecting the manufacturers severely.
Most of the factories at Fatullah did not get gas Sunday, he said.
Echoing Mr Hatem, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Shafiul Islam Mohiuddin said local efficiency and infrastructure need to be developed to overcome the present situation.
"To face the EU recession, we need to reduce the cost of production", he said.
"Considering the international situation, a 22 per cent growth of woven garments is a good achievement," he said.
The other major foreign currency earning sectors especially jute and-jute made products, rubber and specialised textile fell short of both target and the growth of previous year.
Jute and jute goods fetched $477.10 million in the first half of the ongoing fiscal marking a negative growth of 13.04 per cent and it is also 23.92 per cent lower than the target set for the period.
The country's merchandise exports fell short of target by 11.15 per cent in last December, mainly due to the crisis in the eurozone.
Exports in December 2011, however, increased by 3.85 per cent to $2.06 billion over the corresponding period of last year.
Exports during July-December last stood at $11.77 billion marking a growth of 14.72 per cent while the growth during the corresponding period of previous year was 41 per cent, the Export Promotion Bureau (EPB) data revealed.
Earnings from knitwear in July-December last stood at $4.79 billion marking a growth of 11 per cent which was 43.39 per cent during the corresponding period of the previous year.
Shipment from woven garments stood at $4.45 billion during the first half of the current fiscal, marking a growth of 22.56 per cent while the growth was about 41 per cent in July-December of 2010-11 fiscal.
Exporters said the recent economic recession in European Union (EU) countries has been the main reason for such slow growth as most of the shipments are confined to this market.
"Export growth slowed down mainly because of the recession in the European Union," Vice-President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem told the FE.
Bangladesh was not badly affected by the recession of 2009 but it has now been hit hard by the present economic meltdown in the EU, he said adding orders drastically fell during last few months.
Moreover, the volatile cotton market also badly affected the sector, he explained.
Buyers were in a wait-and-watch mood, he said adding, though the flow of orders from them is increasing in recent times, it is not up to the desired level.
"We are in doubt whether the target of the current fiscal would be achieved," he said adding gas crisis is affecting the manufacturers severely.
Most of the factories at Fatullah did not get gas Sunday, he said.
Echoing Mr Hatem, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Shafiul Islam Mohiuddin said local efficiency and infrastructure need to be developed to overcome the present situation.
"To face the EU recession, we need to reduce the cost of production", he said.
"Considering the international situation, a 22 per cent growth of woven garments is a good achievement," he said.
The other major foreign currency earning sectors especially jute and-jute made products, rubber and specialised textile fell short of both target and the growth of previous year.
Jute and jute goods fetched $477.10 million in the first half of the ongoing fiscal marking a negative growth of 13.04 per cent and it is also 23.92 per cent lower than the target set for the period.