Apparel exports to US fall 13% in Jan-Mar
The overall apparel demand in the US is seeing a downturn due to an economic slowdown induced by the ongoing Russia-Ukraine war
Bangladesh's apparel exports to the US shrank by 13.34% in the first quarter (January to March) of 2023 as this key market is going through an overall slowdown in demand for garment products.
Bangladesh's apparel shipment to the US was valued at $2.14 billion in the first three months of this year, which was $2.46 billion in the same period last year, according to the US Department of Commerce's Office of Textiles and Apparel (OTEXA).
The overall apparel demand in the US is seeing a downturn due to an economic slowdown induced by the ongoing Russia-Ukraine war, exporters said.
However, they said the US market retains a good position for Bangladeshi apparel compared to other export destinations and expected better figures by the end of the year.
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The OTEXA data show that the overall US apparel import declined from $24.25 billion to $19.47 billion in Q1 of 2023 – a 19.73% decline.
During the same period, the world's top apparel exporter China saw its garment shipments to the US drop by 34.89% to $3.47 billion.
Vietnam, the second largest apparel exporter to the market, also saw its apparel exports dip by 24.25% to $3.37 billion.
Besides, Indian Indonesian apparel shipments to the US dropped by 11% and 17.96% respectively in the first three months of 2023.
BGMEA President Faruque Hassan told The Business Standard that the negative growth underlines a global economy that is in turmoil as most western countries are facing high inflation and high-interest rates due to the ongoing war between Russia and Ukraine.
"As we feared, the global apparel demand slowdown would impact firstly on our orders volume and then value," Faruque Hassan said.
The BGMEA president said that Bangladesh had maintained moderate growth despite falling demand for apparel at international markets, thanks to the shipment of high-value items. "But apparel values are now falling in the same row."
He mentioned that this year would remain challenging for the apparel industry.
Bangladesh may miss its export target for this fiscal year, Faruque Hassan said, however, hoping that despite all challenges Bangladesh would be able to maintain a better position than other competing countries by the end of the year.
