Exports keep momentum in August

Bangladesh’s export earnings increased by 4.32% to $2.97 billion for the second consecutive month in August after witnessing a sharp decline for four months till June due to the Covid-19 pandemic. 

Earnings from merchandise export during the July-August period of the current 2020-21 fiscal year rose 2.17% to $6.88 billion compared to the corresponding months of the last fiscal year.

In August, export earnings from clothing products rose by 2.58% to $2.47 billion, which was $2.41 billion last year.  

In FY20, the country’s export earnings registered a sharp decline of nearly 17% to $33.67  billion as the Covid-19 pandemic disrupted the global supply chain and slashed the demand for most goods.

In April, May and June, the country saw the worst case of export earnings, as it nosedived by 82.85%, 61.57% and 2.5% to $520 million, $1.46 billion  and $2.71 billion respectively.

The slight rise in July in export earnings was driven by the better performances from  knitwear products, agricultural products, pharmaceuticals, jute and jute goods, and the home textile sectors.

“Exports performance is better than expected. Good sign was the resilience that protected the apprehended collapse in earnings,” Dr Zahid Hussain, former lead economist of World Bank, Dhaka told Dhaka Tribune. 

New export items such as Personal Protective Equipment (PPE) and some small sectors including pharmaceuticals, agriculture, jute and jute goods contributed to the turnaround, said the economist. 

On the other hand, shipment of canceled/on hold apparel work orders had played an important role, said Zahid. 

But the fear remained about the next season’s orders as the major market US and EU were yet to come out from the covid crisis, he added.

It would be great if Bangladesh could stop the fall and retain the growth. For this, we must concentrate on maintaining the growth of the non-apparel sector, he added.  

Performance of RMG sector  

Export earnings from the apparel sector, the largest contributor to overall exports, remained almost flat. It earned $5.71 billion in July-August, down by 0.06% which was $5.72  billion in the same period of last year. 

Knitwear products  earned $3.11 billion, up by 6.640%, compared to $2.92 billion in the same period  of last year.

On the other hand,  export earnings from woven garments declined by 7.06% to $2.59 billion, which was $2.79 billion a year ago.

Performance of other sectors

Among the major products, agricultural products posted a 32.64% growth to $178.27 million during July-August period of FY21, which was $134.40 million in the same period of FY20. 

Jute and Jute goods earned $195.39 million registering a 49.64% growth while export earnings from home textile grew by 43.87% to $168 million.

But the specialized textile sector saw a 6.57% decline to $19.2 million.  

Pharmaceutical exports marked a 19% growth to $27.26 million against $23 million in the same period of last year. 

Export earnings  from leather and leather goods in July-August this year declined by 16.54% to $154.74  million from $185.41 million in the period of last year.

Leather footwear  exports saw a fall of 11.89% to $105 million while other leather products fetched $34 million with a 22.94% negative growth during the period. 

On the other hand, export earnings from frozen and live fish declined by 10% to $74.56 million while  the shrimp export fell by 10.94% to $59 million during the July-August period of FY21.