Bangladesh RMG Export Declines by 13.93% in October, Overall Export Down by 13.64%
08 November 2023, Mumbai
RMG exports from Bangladesh declined by 13.93% in October 2023, from 3.68 billion dollars in October 2022 to 3.17 billion dollars in October 2023. This represents a decline of 513 million dollars, or around 5,643 crore taka.
For the period of July–October 2023, RMG exports from Bangladesh reached US$ 14.78 billion, up from US$ 13.95 billion in July–October of FY 2022–2023, indicating 5.59% year-over-year growth. However, the overall export earnings for July–October 2023 grew by only 3.52%, falling 9.31% short of the strategic export target for the same period.
Factors impacting
The decline in RMG exports in October is attributed to a number of factors, including the labor unrest in the final week of October, which allegedly sparked around the minimum wage issues, and the depressed sales and demand in the global market caused by historic high inflation followed by the Russia-Ukraine war.
Inflationary pressures
The RMG industry in Bangladesh is also feeling the heat of global inflation, as the cost of all inputs, including fuel, gas, electricity, and transportation, has increased significantly. Additionally, the Bangladesh Bank has increased interest rates since the first of July this year, making trade and investment finance more costly.
Policy intervention
The Government of Bangladesh has also declared new minimum wages for garment workers, increasing the gross wage of 7th grade workers by 56.25% and the basic wage by 63.41%. This growth in wages will escalate the cost of goods further.
