Bangladesh’s RMG exports to the world saw a growth of 12.00% during July-January 2024-25, reaching a total of US$23.55 billion, indicating a positive trend. However, when comparing the RMG export figures of July-January 2024-25 with those of July-January 2022-23, the growth over the two-year period was only 1.38%.
After experiencing consecutive double-digit growth in the past four months (September-December), the growth in January 2024-25 slowed down to 5.57%, with a single-month export value of US$3.66 billion. The knitwear sector posted a relatively higher growth of 6.62%, while the woven garment export growth recorded 4.52%.
While the growth figures are encouraging, they do not fully reflect the challenges faced by the industry, particularly the pressure on prices and costs. Further analysis is required to identify the specific factors influencing this trend, such as market-specific performance, product and market concentration, and other variables.
The global trade is estimated to have shrunk significantly last year, leading to intense price competition. Amidst the looming trade war, there are some opportunities for Bangladesh’s RMG sector. However, several priorities need to be addressed to support business operations, including energy security and financial/banking sector stability.
Author: Mohiuddin Rubel, Former Director, BGMEA, Additional Managing Director, Denim Expert Ltd
