RMG exports dip by $6.3b in FY20 on pandemic

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The country’s readymade garment exports in the simply concluded financial year 2019-20 declined by 18.45 %, or $6.3 billion, to $27.83 billion from $34.13 billion in FY 2018-19 as the global outbreak of coronavirus disrupted organization across the world.

Although the export earnings witnessed a poor growth in June, the last month of FY20, the export performance in the month was slightly better compared with that in the previous three months.

Based on the provisional data made by the Bangladesh Garment Makers and Exporters Association compiling figures from the National Table of Revenue, the RMG export in June this season declined by 11.43 % to $2.12 billion from $2.39 billion in the same month of 2019.

Gurus and exporters said that the export revenue increased in June nonetheless it was first difficult to predict the situation of the coming a few months as the pandemic cut the demand for apparel items on the global marketplace.

They said that the July-September period was a lean period for the industry and exporters would need to wait to start to see the impact of the growing season.

The earnings from RMG exports declined by 62 % in-may and 85 % in April this year as the pandemic disrupted the global source chain.

RMG exports improved found in June as the global market began to recover slowly nonetheless it is difficult to state whether the style would remain the same in July, Policy Study Institute of Bangladesh executive director Ahsan H Mansur told MODERN on Wednesday.

He said that exports increased found in June because of post-Eid bump due to the shipment was lower in May as a result of Eid-ul-Fitr vacation.

Ahsan said that exports would recover slowly due to the western countries started reopening their economies but there was a fear of a second wave of the pandemic.

‘I trust exports will grab but Bangladesh might not manage to utilise a lot more than 70-75 % of its ability as the nature of orders will end up being changed and the demand may also decrease,’ he said.

Rubana Huq, president of the Bangladesh Garment Makers and Exporters Association, said that the 8.5-per cent export dip about a year-on-year basis was a reflection of the truth.

‘July-September is a comparatively lean period for the sector and we'll wait to start to see the impact while orders are coming in to the tune of 40-45 % when compared to usual move,’ she said.

Rubana said that full restoration usually takes as late seeing that the center of 2021.
Source: https://www.newagebd.net

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