In November 2024, Bangladesh’s readymade garment (RMG) exports to the European Union (EU) experienced a significant increase of 24.09%, reaching €1.53 billion, up from €1.23 billion in November 2023, according to Eurostat data.
Consistent Growth in Recent Months
This surge is part of a consistent upward trend observed over the past few months. Exports in October 2024 were €1.75 billion, marking a 33.83% growth, while September saw a 7.39% increase to €1.54 billion. The growth from September to November is attributed to heightened demand during the EU’s peak retail season.
Factors Driving the Increase
Industry experts attribute this positive trend to several factors:
- Easing Inflation and Interest Rates: The reduction of inflation and declining interest rates in Western countries have bolstered consumer purchasing power, leading to increased demand for apparel.
- Shift in Global Sourcing: Bangladesh has seen a rise in orders for higher-value-added products, partly due to a strategic shift of orders from China amid global trade dynamics.
Year-to-Date Performance
Between January and November 2024, Bangladesh’s apparel exports to the EU grew by 2.53%, totaling €16.72 billion, up from €16.31 billion during the same period in 2023. This growth outpaced the global average increase of 0.34% in apparel imports by the EU.
Product Category Insights
- Knitwear: Exports rose by 0.89% to €10.05 billion, compared to €9.97 billion in the previous year.
- Woven Garments: Experienced a more substantial increase of 5.13%, reaching €6.67 billion, up from €6.35 billion in the same period of 2023.
Bangladesh’s Position in the EU Market
Bangladesh maintained its status as the EU’s second-largest apparel supplier, following China. China’s exports to the EU grew by 1.19% to €22.11 billion in the first 11 months of 2024. Overall, the EU’s apparel imports from various countries slightly increased by 0.34%, totaling €78.60 billion during this period.
Outlook
The robust performance of Bangladesh’s RMG sector in the EU market underscores the industry’s resilience and adaptability. With favorable economic conditions and strategic positioning, the sector is poised for continued growth in the coming months.
Source:
https://www.tbsnews.net/economy/rmg/apparel-exports-eu-grow-24-nov-last-year-1047336
