Export growth in August slows down year on year

Bangladesh's export growth slowed down drastically in August as there was a reduction in growth of shipment of manufactured products, particularly readymade garments, according to data released by Export Promotion Bureau (EPB) today.

In August, exporters earned $4.7 billion, registering a 3.8 percent year-on-year growth over the same period a year ago. In August last year, shipment surged 36 percent compared with the previous year.

With August's receipts, overall proceeds from exports grew 9 percent year on year to $9.37 billion in the first two months of the fiscal year 2023-24 beginning from July.

Garments, the biggest export-earning sector which registered 26 percent growth during the July-August period of the previous fiscal year, rose 12 percent this fiscal year.

Apparel makers fetched $7.99 billion in two months ending on August 31 this year, up from $7.11 billion the same period a year ago, according to the EPB data.

Two other major sectors -- leather and leather products, as well as jute and jute goods -- suffered a decline in export earnings.

The figures showing slowdown in export growth comes a day after the Bangladesh Bank said inflow of remittance, another major source of foreign currency for Bangladesh, slumped last month.

Data about the two major sectors comes at a time when Bangladesh's foreign exchange reserve is gradually falling. Overall forex reserve stood $23.06 billion on August 30 and is projected to slip below the $23 billion-mark this week after a $1.20 billion payment to the Asian Clearing Union for imports from eight Asian countries.