Bangladeshi RMG Industry Reports Strong Performance in FY2023-24 (July-February)
14 March 2024, Mumbai
This report analyzes the recently released official export data for the period of July-February FY2023-24, focusing on the performance of the Ready-Made Garment (RMG) sector.
Positive Growth Trajectory:
- As sector anticipated in previous communications, the global clothing trade is showing signs of recovery in 2024, following a slowdown in 2023.
- RMG exports during the first two months of 2024 reached US$9.47 billion, a significant 13.15% increase compared to the same period last year.
- For the entire July-February FY2023–24 period, RMG exports reached US$32.86 billion, reflecting a year-over-year growth of 4.77%. This growth rate is particularly encouraging considering the slower pace (1.72%) observed in the first half (July-December) of the fiscal year.
Record-breaking Achievements:
- Notably, January 2024 saw the highest ever RMG export figures for a single month. February 2024 also achieved record-breaking export numbers compared to previous Februarys.
- These achievements are particularly inspiring given the numerous challenges the industry has faced on both local and international fronts.
Dominant Industry Share and Entrepreneurial Spirit:
- RMG exports accounted for a remarkable 85.45% of Bangladesh's total export earnings in July-February 2023-24. This share increased even further to 86.74% in January-February 2024.
- These impressive figures showcase the remarkable resilience and adaptability of Bangladeshi entrepreneurs in the RMG sector.
Sustainable Growth and Future-Proofing:
- The recent growth is accompanied by a positive trend in investments in diversified RMG items. This diversification is crucial to safeguarding the industry from vulnerabilities and ensure balanced growth.
- Nation's ongoing commitment to sustainability, circular economy practices, worker well-being, and the industry's green revolution remains a cornerstone for continued success. This holistic approach fosters not only economic growth but also environmental and social responsibility, solidifying our position as responsible leaders in the global garment industry.
Navigating Global Challenges and Looking Ahead:
- The industry acknowledges the significant challenges faced in 2022 and 2023, including high unit costs in 2022 and ongoing buyer inventory pressures. However, positive signs are emerging, with retail sales in our major markets showing a comeback and advanced economies exhibiting progress in curbing inflation and boosting employment.
- As one moves forward, 2024 presents a valuable opportunity for further growth. By diversifying our industry further, embracing modular production practices, and continuously adapting to the evolving global landscape, we can not only overcome these challenges but also propel ourselves to even greater heights.
CREDITS: BGMEA press release
