US exports collapse.Exports of Bangladesh products to the US, the largest destination, have collapsed. In the five months of July-November of the current financial year, 3 thousand 640 million dollars worth of products have been exported. This is 9.2 percent less than the same period last fiscal year. During the July-November quarter of 2022-23 financial year, 4 thousand 9 million dollars worth of goods were exported.
It appears that exports have decreased by about 369 million dollars in the five months of the current financial year compared to last time. In local currency, exports to the United States decreased by about 40 thousand 774 crore rupees. About 17 percent of Bangladesh’s total product export income comes from the United States. As a result, the decrease in product exports to this largest destination is spreading concern among the stakeholders.
Exports also fell to major EU destinations Germany, Italy and Belgium. The decline in exports from major markets has had an impact on the country’s overall export earnings. According to EPB data released yesterday, the export income in November was 4 thousand 784 million dollars. This is about 6 percent less than the same month of the previous fiscal year.
Exports to the United States have declined: A review of Export Promotion Bureau (EPB) data shows that the export growth in the United States was positive in July, the first month of the current fiscal year. Bangladesh exported goods worth 809 million dollars in that month. Exports were $786 million in July of the previous fiscal year. However, since then the export income has been decreasing every month.
In August of the current fiscal year, export earnings to the United States fell slightly to 806 million dollars. Revenue fell sharply in September to $675 million. Exports of goods decreased by about 131 million dollars in one month. And in October, exports collapsed. Revenue fell to $574 million.
Exports are also decreasing in the European Union: The European Union (EU) is the largest market for Bangladeshi-made clothing products. The highest income comes from Germany. Germany is the second largest export destination after the United States as a single country. But in the current financial year, the export of this country has also collapsed.
In the July-November quarter of the current financial year, the country has exported goods worth 2 thousand 446 million dollars. This is 15.68 percent less than the same period of last financial year. In the July-November quarter of the last financial year, the amount of export income was 2 thousand 902 million dollars. Compared to the previous year, exports have decreased by about 456 million dollars. Export growth in Italy, another major destination of the European Union, has been positive so far, but it turned negative in November. In the July-November quarter of the current financial year, the export of goods in the country has decreased by 67 percent.
In addition, exports to Belgium have decreased by almost 10 percent in the last five months. Bangladesh enjoys duty-free market for exporting goods to EU countries. Despite this, the decline in the country’s exports to major markets like Germany and Italy is worrying. 48 percent of Bangladesh’s total product exports go to 27 EU countries. And the largest destination as a single country is the United States. About 65 percent of the country’s export earnings come from the United States and the European Union. The reason for the drop in exports from this destination is causing more concern. The labor policy recently announced by the US President has become a bigger concern.
The letter sent from the Bangladesh Embassy in Washington about that policy said that there are many reasons for Bangladesh to be worried about the accepted memorandum. The letter also highlighted its political use, which could lead to announcements such as trade embargoes. To deal with the situation, the Ministry of Commerce held a meeting with representatives of business organizations involved in exports yesterday.
This month itself, the progress of Bangladesh’s labor sector (three plus five and one meeting) will be presented to five diplomats of the United States and the EU. As a result of these initiatives, the ban can be avoided, but the government does not have the strategy to increase exports to those countries at the moment. That depends on increasing consumer demand in Europe-America. Tapankanti Ghosh, Senior Secretary of the Ministry of Commerce, asked about the reason for the decrease in exports to European countries including the United States. Consumer demand in Western countries has fallen due to high inflation. As a result, there has been a negative impact on the export of our products.’
US exports collapse
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