Average apparel exports in July declines $20mn daily

Apparel exporters of the country saw an unexpectedly low export in the first month of the new fiscal year due to the looming global stagflation.
 
In the first 25 days of July 2022, Bangladesh fetched $2.58 billion from apparel exports, down from over $4 billion in June, according to data from the Bangladesh Garment Manufacturers and Experts Association (BGMEA).
 
"Our apparel exports grew very fast in the last fiscal year, but July’s export made us concerned," Shahidullah Azim, vice president of BGMEA, told Business Insider Bangladesh on Wednesday.
 
He said: Export declined at least an average of $20 million to $100 million per day in July.
 
Muhammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said their exports were significantly high in FY22 due to inflation and higher import costs.
 
“The growth was not in volume," Hatem said.
 
In FY22, which ended on June 30, Bangladesh earned $52.04 billion from merchandise exports. Of which, $42.61 billion came from the apparel sector. The home textile sector bagged another $1.62 billion from exports in FY22.
 
BGMEA and BKMEA set a target to export $50 billion worth of apparel items in FY23, but the first month’s figure came as a big blow to their dream to touch the $50 billion mark in the current fiscal year.
 
Exporters blamed the slow export growth on the geopolitical tensions and high inflation that are forcing consumers to spend less. Export to Russia has also gone down because of the ongoing war for over five months.