Exports slump by 17pc, hit five-year lower in FY20
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The country’s export earnings in the just concluded financial year 2019-20 dropped to a five-year low of $33.67 billion as the coronavirus pandemic hit hurt global business.
Export earnings found in FY20 declined by 16.93 %, or $6.86 billion, from $40.53 billion in FY19 as the pandemic disrupted both the supply and demand sides, based on the Export Promotion Bureau info released on Sunday.
As per the EPB info, the country’s export revenue in FY20 are actually lowest since financial season 2014-15 when the earning stood $31.21 billion.
Revenue from readymade garment goods also registered negative expansion for the very first time in the annals of the sector.
Sector persons said that the RMG witnessed the cheapest, 0.2 per cent, growth found in the FY 2008-09 and the sector registered a lot more than 18 % negative growth found in this fiscal year for the very first time.
Professionals said that the new fiscal will be for survival on the global market not for growth.
They said that Bangladesh’s export would need to grow by a lot more than 20 % in this fiscal year to gain around $7 billion revenue that your country lost in FY20.
The EPB data showed that Bangladesh’s export in FY20 fell 25.99 per cent or $11.82 billion short of its focus on of $45.5 billion set by the federal government.
Although the export earnings in FY20 authorized a 16.93-per cent negative growth, the earnings bounced back June weighed against the performance on April and May.
Export earnings in June this year stood in $2.71 billion, which is 2.50 per cent less than $2.78 billion earnings in the same month of FY19, the EPB data showed.
The country’s export earnings in April and could this year declined by 82.85 per cent and 61.57 % respectively as global customers cancelled work orders and developing units remained closed in Bangladesh as a result of outbreak of coronavirus.
‘Our export declined by almost $7 billion in FY20 as a result of COVID-19 outbreak just as the pandemic disrupted both source and demand sides,’ Center for Policy Dialogue distinguished fellow Mustafizur Rahman told MODERN on Sunday.
He said that the new fiscal 2020-21 will be challenging for Bangladesh seeing as the country would need to achieve a lot more than 20 % growth to recover losing made in FY20.
‘The FY21 will be for survival on the global industry not for growth as dual challenges including price cutting and decreased demand will take place in the fiscal,’ Mustafiz said.
Policy Exploration Institute of Bangladesh executive director and BRAC Lender chairman Ahsan H Mansur said that the export amount found in June showed that the RMG exports picked up in the month but the export sector had not been out of troubles.
‘It is a wonderful indication for Bangladesh that the EU countries are likely to reopen their organization but we have to face some issues in the coming days to get export growth found in the area,’ he said.
Ahsan said that Bangladesh would need to choose man-made fibre rather than cotton to grow on the global market as the expansion of cotton became negligible.
He also suggested reducing lead time to stay competitive on the post-pandemic global market.
Readymade garment exports on FY20 declined by 18.12 per cent, or $6.18 billion, to $27.95 billion from $34.13 billion in FY19, the EPB data showed.
The wages from RMG fell 26.83 % short of the target set for the fiscal.
The wages from woven garments fell by 18.58 per cent to $14.04 billion in the time while the earnings from knitwear exports dropped by 17.65 % to $13.90 billion, the data showed.
Mohammad Hatem, senior vice-president of the Bangladesh Knitwear Producers and Exporters Association, said that it was the 1st time the RMG export witnessed adverse growth.
Earlier in FY 2008-09, all the RMG exporting countries in the world registered negative growth but Bangladesh registered 0.2 per cent positive expansion, he said.
Hatem feared that RMG export may also register negative expansion found in FY21 as the flow of export orders was lower than usual.
Amid the pandemic, export earnings from jute and jute goods preserved a reliable growth and became the second highest export earning sector after RMG products.
Exports of jute and jute items increased by 8.10 % to $882.35 million in FY20 from $816.27 million in the last fiscal year.
The export earnings from set and set goods in FY20 fell by 21.79 per cent to $797.6 million from $1.01 billion in FY19.
The earnings from household leather footwear decreased by 21.24 % to $478.75 million in the just concluded financial year.
The EPB info showed that the export earnings from home textile stood at $758.91 million in FY20, down 10.90 per cent from $851.72 million in FY19.
Agricultural products including fruit and vegetables, fruits and spices on FY20 fetched $862.06 million with a 5.16-per cent bad growth.
Frozen and live fish exports in FY20 decreased by 8.84 per cent to $456.15 million, the EPB data showed.
Source: https://www.newagebd.net
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