Bangladesh’s apparel exports to the European Union saw positive growth in September 2024, marking the second consecutive month of increase, although overall apparel exports to the economic bloc declined by 2.47 per cent in the first nine months of the year, compelled by significant drops in first quarter of the year.

The country’s apparel exports to the EU in September 2024 grew by 6.9 per cent year-on-year to 1.53 billion euro, up from 1.43 billion euros in the same period of 2023, driven largely by knitwear, while woven garments posted slightly slower growth, according to data from Eurostat, the statistical office of the EU.

However, Bangladesh’s apparel exports to EU declined by 2.47 per cent to 13.43 billion euros in January–September 2024, down from 13.77 billion euros in the same period in 2023.

The overall imports of apparel by the EU from different countries in the first nine months of 2024 decreased by 2.28 per to 62.86 billion euros from 64.46 billion euros in the same period of the previous year.

The data revealed that, during the period, the EU’s apparel imports from nearly all major supplier countries experienced negative growth, with the exception of imports from Pakistan.

‘While global demand has been improving in recent months, Bangladesh is struggling to fully capitalise on the opportunity due to eroding competitive advantages, primarily caused by high utility prices, inadequate gas supply and the recent wage hike,’ said Bangladesh Knitwear Manufacturers and Exporters Association former president Fazlul Hoque.

He said that these factors have driven up production costs, contributing to the negative growth.

Fazlu, also managing director of Plummy Fashions Ltd, said that while work orders have been arriving in Bangladesh in recent months, the price of apparel remained one of the major challenges for buyers.

He also said that the latest wave of labour unrest has dealt a blow to the industry, as buyers were hesitant to place orders in the industrial zones of Ashulia and Gazipur due to concerns over stability.

Although, Bangladesh’s overall readymade garment exports to the EU dropped in the first nine month of 2024, the woven Garments increased by 1.50 per cent to 5.49 billion euros in the period.

The export earnings from knitwear in January-September of 2024 drop by 5.04 per cent to 7.93 billion euro, data showed.

Eurostat data indicated that in September 2024, total apparel imports from Bangladesh to the EU rose by 6.9 per cent year-on-year, reflecting a strong recovery and robust demand.

Woven garment imports by the EU from Bangladesh in September of 2024 rose by 6.5 per cent year-on-year to 562.58 million euros while, knitwear imports experienced a 7.13 per cent rise to 965.46 million euros in the month.

According to the data, the monthly RMG export trend of Bangladesh to the EU in 2024 showed fluctuations, with notable declines in the first three months.

The EU apparel imports from Bangladesh in January2024 registered a sharp decline of 34.03 per cent to 1.19 billion euros from from 1.80 billion in the same month of 2023.

February followed with an 18.33 per cent drop, from 1.59 billion euros to 1.29 billion euro, while March continued the downward trend with an 8.12 per cent decrease, from 1.93 billion euros to 1.77 billion euro.

However, Bangladesh’s apparel export performance in the EU improved in the second quarter of 2024, with a strong recovery in April, as exports surged by 29.80 per cent to 1.75 billion euro, up from 1.35 billion euros in the same month of 2023.

This positive momentum carried on into May, with a 20.74 per cent increase in importing apparel from Bangladesh by the EU, rising to 1.59 billion euros from 1.32 billion euros in the same month of the previous year.

Bangladesh’s apparel exports to the EU in June 2024 saw a slight dip of 5.88 per cent with exports falling to 1.12 billion euros from 1.19 billion euro.

In July, a minor decline of 2.67 per cent was recorded, with exports dropping from 1.61 billion euros to 1.56 billion euro.

EU apparel imports from Bangladesh in August 2024 increased by 3.87 per cent to 1.61 billion euro, up from 1.55 billion euros in the same month of 2023, Eurostat data showed.

The EU’s apparel imports from China in January-September of 2024 fell by 2.23 per cent to 17.31billion euros from 17.71 billion euros in the same period of 2023.

The EU’s apparel imports from Turkey in the first nine months of 2024 declined by 7.13 per cent to 7.08 billion euros from 7.62 billion euros in the same period of 2023.

The EU’s apparel imports from India decreased by only 0.97 per cent to 3.39 billion euros in the first nine months of 2024 compared with that of 3.42 billion euros in the same period of the past year.

Vietnam also faced a minimal 0.33 per cent negative growth with total exports decreasing from 2.84 billion euros to 2.83 billion euros.

Pakistan’s apparel exports to the EU grew by 8.21 per cent in January-September of 2024, increasing to 2.53 billion euros from 2.34 billion euros in the same period of 2023, the Eurostat data showed.