Bangladesh’s garment shipments to the United States, its single largest export destination in 2023, are to drop 25 per cent year over year to US $ 7.29 billion due to substantial inflation caused by the current Russia-Ukraine war.
As to the data provided by the US Department of Commerce’s Office of Textiles and clothing (Otexa), Bangladesh’s apparel exports to the US were at US $ 9.72 billion in 2022.
The report additionally demonstrated that, compared to a year earlier, the value of the country’s overall garment imports decreased by 22.04 per cent to US $ 77.84 billion.
According to Otexa data, the volume of Bangladesh’s RMG exports to the USA decreased by almost 28 per cent in 2023, from 3.13 billion square metres in 2022 to 2.25 billion square metres.
In an interview with local media, President Faruque Hassan of the Bangladesh Garment Manufacturers and Exporters Association stated that the world garment market was extremely unstable in 2023 since all countries decreased imports as a result of high inflation brought on by the conflict between Russia and Ukraine.
According to him, the US, which imports the most apparel, reduced its consumption due to the high inflation in 2023.
He added that every exporting country had the same experience in 2023 concerning negative growth in garment exports to the US market, not just Bangladesh.
In the upcoming days, the president of BGMEA anticipates that this market will improve.
In addition, he said that US interest rates and inflation would remain steady, which might support a market recovery in the upcoming months.
The share of Bangladeshi apparel in the US market was about 10 per cent in 2022, while it fell to 9.37 per cent last year.
Nonetheless, Bangladesh maintained its ranking as the third-largest garment exporter to the US market, following both China and Vietnam, with respective shares of 20.96 per cent and 18.21 per cent.
The OTEXA data showed, in 2023, Chinese apparel export to the USA fell 10.83 per cent to US $ 16.32 billion from US $ 21.75 billion a year ago.