Apparel exports to EU grow 24% in Nov last year

Bangladesh's apparel exports to the European Union grew 24.09%, reaching €1.53 billion ($1.57 billion) in November last year, primarily driven by easing inflation and declining interest rates in Western countries.

Driven by rising demand in the European market, apparel shipments showed consistent growth for four months through November, according to data from Eurostat, the statistical office of the 27-nation bloc.

In the first 11 months of 2024, six months recorded positive growth, including four months with double-digit increases ranging from over 20% to nearly 34%, while the remaining five months saw negative growth in apparel exports.

Thanks to rising demand, apparel shipments to Bangladesh's largest single destination grew by 2.53% between January and November, surpassing the global average growth of 0.34%.

Exports in the four months reached €16.72 billion, up from €16.31 billion in the equivalent period of 2023. Knitwear exports rose by 0.89% to €10.05 billion, while the woven sector saw a more significant increase of 5.13%, rising from €6.35 billion to €6.67 billion, according to Eurostat.

Apparel exporters attributed the growth to easing inflation and declining interest rates in Western countries, particularly in EU nations, which boosted global demand for apparel. They also noted an increase in orders for higher-value-added products from Bangladesh.

Exporters also expressed optimism about a steady flow of orders, adding that improved law and order could attract even more global business to Bangladesh. 

A strong recovery from August to November 2024 was driven by heightened demand during the EU's peak retail season.

Speaking with The Business Standard, Abdullah Hil Rakib, managing director of Team Group, said the EU's growth in apparel imports is tied to its economic recovery from the effects of ongoing wars and inflation. 

He credited Bangladesh's apparel export growth to the 27-naiton trading bloc to several factors, including the shift of some orders from China due to trade tensions, which has benefited Bangladesh.  

Rakib expressed optimism about maintaining this momentum in the coming months, provided the government ensures adequate power and energy supplies alongside proper policy support. 

He urged the government to prioritise law and order, pointing out that extortion in many industrial areas has become a significant challenge for businesses.  

Expressing concern over recent proposals to increase energy prices and potential hikes in labour wages, the entrepreneur warned of their implications for exporters.  

"If the government does not revise these proposals, it will result in higher overall production costs, further diminishing our competitiveness in the global market," said Rakib, who is also a former senior vice president of Bangladesh Garment Manufacturers and Exporters Association.  

Bangladesh remains 2nd-largest RMG exporter to EU

The Eurostat data showed that overall apparel imports by EU countries from the global market in the first 11 months of 2024 slightly increased by 0.34%, reaching €78.60 billion, compared to €78.33 billion in the equivalent period last year.

Bangladesh remained the second-largest apparel exporter to the EU after China, supported by its cost-effectiveness and increasing focus on sustainability, according to exporters.

China retained its top position, with exports rising by 1.19% to €22.11 billion from €21.85 billion in the first 11 months of 2023.

China's knitwear exports to the EU grew by 3.67%, while woven garment shipments saw a slight decline of 1.31%.

The EU's apparel imports from Turkey between January and November declined by 6.99% to €8.60 billion, down from €9.24 billion a year ago.

The EU's apparel imports from India increased by 0.70% to €3.91 billion, compared with €3.88 billion a year earlier.

Vietnam's apparel exports to the EU grew by 2.87% to €3.63 billion, up from €3.53 billion the year before.

Cambodia and Pakistan emerged as strong performers in exporting ready-made garments to the EU during the January–November period, driven by significant growth in both the knitwear and woven segments.

The EU's apparel imports from Cambodia increased by 19.94% to €3.58 billion, compared with €2.99 billion in the first 11 months of last year.

Pakistan's apparel exports to the EU increased by 11.16% to €3.20 billion, up from €2.88 billion a year ago.