Exports grow 17.72% in Dec on robust RMG 

Infographic: TBS

Highlights

• Export earnings grew nearly 12.84% in H1 of FY25 to reach $24.53 billion
• In December alone, earnings were $4.63 billion
• RMG sector contributed nearly $19.88 billion in H1 of FY25
• RMG sector accounted for over 81% of all exports in H1

Bangladesh's merchandise exports experienced positive growth for the fourth consecutive month, increasing by 17.72% year-on-year in December, primarily driven by readymade garment (RMG) shipments.

Export earnings grew 12.84% year-on-year in the first half of the current fiscal year, reflecting the resilience of the apparel sector, which has performed well despite production disruptions caused by prolonged labour unrest in August and September.

According to provisional data from the Export Promotion Bureau (EPB), the country's export earnings in December reached around $4.63 billion, compared to $3.93 billion a year ago.

EPB data show, merchandise exports totalled $24.53 billion during July-December, an increase from $21.74 billion in the same period the previous year.

As the country's primary export earner, the RMG sector contributed $19.88 billion during the first half, reflecting a 13.28% growth and accounting for over 81% of total export earnings. This marks an increase from $17.55 billion in the same period of the previous year.

Within the sector, knitwear exports contributed $10.83 billion, while woven garment exports accounted for $9.05 billion.

In December alone, the apparel sector achieved a growth rate of 17.45%. Knitwear exports generated $1.89 billion, while woven garment exports contributed $1.87 billion.

RMG exporters attributed the growth to two key factors: the recovery of major export destination economies, which has boosted sales, and the stabilisation of labour unrest in key industrial zones, which prompted the return of some orders that had previously shifted to other countries.

Abdullah Hil Rakib, managing director of Team Group, told The Business Standard that the export growth reflects an increase in orders for Bangladesh. Citing his own experience, he noted that all six of their manufacturing units are currently operating at full capacity.

Rakib, also a former senior vice president of the Bangladesh Garment Manufacturers and Exporters Association, further mentioned that the growth in December exports was driven by the demand for Christmas, Black Friday, New Year, Thanksgiving, and Boxing Day in Western markets.

Tanvir Ahmed, managing director of Envoy Textiles, told TBS that their textile mill operated at 92% capacity in the first quarter of the current fiscal year. "We have booked full-capacity orders until the middle of February, and December also ran at 100% capacity," he added.

Ahmed further noted that they have received strong projections from major buyers to continue operating at full capacity until the third quarter of this fiscal year. 

However, he pointed out that due to food inflation in Western markets, buyers are attempting to negotiate lower prices.

Performance of other sectors

Among other major export sectors, agricultural products experienced a positive growth of 14.41%, reaching $100.13 million, up from $87.52 million in December FY24.

Leather and leather goods recorded a significant jump with 24.19% growth, reaching $110.90 million compared to $89.30 million in December of the previous year.

In December, home textiles experienced a 20.47% growth, reaching $83.98 million, up from $69.71 million a year earlier.

Export receipts from jute and jute goods grew by 1.47%, reaching $75.69 million, compared to $74.59 million in December FY24