Exports in May highest in 23 months

Bangladesh recorded $4.73 billion in exports in May, the highest in at least 23 months, owing to increased shipments of manufactured commodities, especially apparel, ahead of the Eid-ul-Azha festival to be celebrated on Saturday.

Exports grew 11.45 percent in May this fiscal year (2024-25) from $4.25 billion in the same month the previous year, according to data from the Export Promotion Bureau (EPB) yesterday.

Garments, which account for more than 80 percent of export receipts, recorded a year-on-year growth of nearly 12 percent to $3.91 billion in May of this fiscal year (FY) 2024-25.

The shipment of apparel, comprising knitwear and woven garments, was the highest in 35 months, according to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Exports of major manufacturing items, namely leather and leather goods, jute and jute goods, and non-leather footwear, also increased last month. Agricultural product shipments, however, fell.

Overall exports in the July-May period of FY25 grew 10 percent year-on-year to $44.94 billion, a development that is helping the country gradually come out of economic stress.

The surging inflow of remittances provided further impetus to the recovery, although Bangladesh recorded a 3.97 percent economic growth in FY25, the lowest since the Covid-19 pandemic year, due to a slowdown in the agricultural and services sectors.

Mahmud Hasan Khan, president-elect of the BGMEA, said the situation regarding work orders was good.

"This is why exports showed better performance. Also, some work orders that were suspended were reinstated recently. Those factors had a positive impact on the earnings from exports," he said.

"If the 37 percent tariff announced by the Trump administration as part of its reciprocal tariff move on dozens of countries, including Bangladesh, is not properly negotiated and this rate continues, exports will be affected," he added.

"But if the tariff can be reduced from the proposed 37 percent, Bangladesh's exports will continue to grow," Khan said.

He also said the export earnings from the garment sector would have been much better had there been no gas crisis last month.

Total garment exports rose 10 percent year-on-year to $36.55 billion in the July-May period of FY25.

Mohiuddin Rubel, additional managing director of Denim Expert Ltd, attributed the spike to advance shipments ahead of Eid-ul-Azha, the second biggest religious festival in the country.

The government earlier announced a 10-day holiday for Eid.

The EPB data showed exports of leather and leather goods, the second-largest export earner after garments, climbed 35 percent year-on-year in May, while non-leather footwear exports shot up 21 percent in the same month.

During the July-May period of FY25, leather and leather goods exports crossed the $1 billion mark, posting a 12.55 percent year-on-year growth.

Non-leather or artificial footwear clocked roughly half a billion in exports in the 11 months of the fiscal year ending this month.

Kazi Iqbal, research director of the Bangladesh Institute of Development Studies, said, "Double-digit growth in RMG is nothing new. It is likely to increase further when shipments for Christmas start."