Bangladesh’s export earnings in May 2024 fell by 16.06 per cent to $4.07 billion compared with $4.85 billion in the same month of 2023.

The country’s export earnings in the July-May period of the current financial year 2023-24 stood at $51.54 billion with a 2.01 -per cent growth compared with that of $50.52 billion in the same period of FY 2022-23, according to the Export Promotion Bureau data released on Wednesday.

Exporters said that Bangladesh’s exports experienced negative growth over the past two months due to various external and internal factors.

These included a global demand slowdown caused by inflation, shortages in gas and electricity supply, complex customs procedures, and delays in export shipments.

Additionally, they cited increased minimum wages, higher costs for electricity, gas, and transportation, elevated bank interest rates, and the low prices offered by buyers as factors hindering the competitiveness of Bangladesh’s RMG sector.

In May 2024, export earnings from readymade garments declined by 17.19 per cent year-on-year to $3.35 billion, compared to $4.05 billion in May 2023.

Data indicated that knitwear exports for the month decreased by 20.75 per cent to $1.83 billion, while earnings from woven garments fell by 12.48 percent to $1.52 billion.

Export earnings from RMG in the 11 months of FY24 increased by 2.86 per cent to $43.85 billion compared with those of $42.63 billion in the same period of FY23, the data showed.

Export earnings from woven garments in July-May of FY24 decline by 1.09 per cent to$19.14 billion compared with those of $$19.35 billion in the same period of the previous financial year.

Export earnings from knitwear in the first 11 months of FY24 grew by 6.15 per cent to $24.71 billion compared with those of $23.27 billion in the same period of FY23.

S M Mannan Kochi, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), highlighted the impact of global inflation and rising interest rates on consumer purchasing power, resulting in reduced retail sales and apparel imports.

He also noted a significant decline in unit prices of products in the US and Europe, further contributing to the decrease in exports.

Kochi emphasized that factors such as increased minimum wages, escalating costs of electricity, gas, and transportation, along with a surge in bank interest rates to 14-15 per cent from single digits, as well as the reduction of cash assistance, were dampening the industry’s competitiveness.

BGMEA president expressed concerns regarding complications with the National Board of Revenue (NBR), ports, and banking operations.

Kochi also raised apprehensions about the government’s decision to withhold gas and electricity connections and bank loans for new factories outside industrial zones, warning that this move could impede investment and export growth if implemented.

According to data from the Export Promotion Bureau (EPB), export earnings from home textiles in July-May of FY24 decreased by 24.29 per cent to $776.06 million, down from $1.02 billion in the same period of FY23.

During the 11 months of FY24, earnings from leather and leather goods declined by 14.17 per cent to $961.49 million, compared to $1.12 billion in the corresponding period of FY23.

Earnings from leather-footwear exports in July-May of FY24 fell by 25.92 per cent to $477.24 million, while other leather products fetched $358.54 million, experiencing a negative growth rate of 0.81 per cent.

In the same period, export earnings from jute and jute goods fell by 7.53 per cent to $784.69 million, down from $848.6 million in FY23.

However, there was a positive trend in export earnings from agricultural products, which increased by 8.2 per cent to $846.33 million from $795.01 million.

Frozen and live fish export earnings in the 11 months of FY24 fell by 13.56 per cent to $344.98 million, down from $399.09 million, while earnings from shrimp exports declined by 20.09 per cent to $226.59 million.

Moreover, exports of engineering products in July-May of FY24 saw a decrease of 7.52 per cent to $479.96 million, compared to $518.97 million in the same period of the previous financial year.