Single month RMG export hits historic high

Bangladesh made the highest amount of garment shipment in a single month in January riding on the rebounding global economy and revival of the export.

In fact, January 2024 stands unique for its highest export turnover in a single month in the country's history, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The country shipped $4.97 billion worth of garments in January, posting a 12.45 percent year-on-year growth, according to data from the Export Promotion Bureau (EPB) compiled by the BGMEA.

After a depressive October-December quarter of 2023, the export growth curve has taken a positive shift.

In January, knitwear export grew by 17.32 percent year-on-year while woven rebounded by posting a 7.16 percent growth.

"This is a huge milestone and the reflection of our continued expansion, BGMEA President Faruque Hassan said in a statement.

"This is also a reflection of how we are diversifying our product and market base, and moving up in the ladder of value addition."

"We have seen retail sales growth in our major markets where the figures of the USA and the UK markets hit records during holiday seasons last year," the BGMEA chief also said.

Hassan said the burden of excess inventory at the buyers' end is now relaxed and new orders are expected to come.

The pressure on major economies caused by high inflation and interest rate is also getting reduced, Hassan said.

Therefore, it is expected that 2024 will be a year of come back in terms of trade and growth.

"However, we should not be overwhelmed by the instant response of the market."

"Particularly we need to be careful while planning new capacity and expansion, cause we cannot add more vulnerability to our existing overcapacity situation. So, quality investment, especially in backward linkage will be crucial for us for the next 5 years," Hassan said.