Despite its ongoing compliance struggles and recent political unrest, Bangladesh’s exports rose for the fifth straight month by 7.4% in March to $2.59 billion owed to strong sales in the ready-made garment sector.
From July to March of the current fiscal year, total exports were up nearly 3 percent to $22.9 billion, with garment exports earning $18.62 billion, a 3.18% increase over the previous year period, according to Bangladesh’s Export Promotion Bureau.
Knitwear exports ticked up 2.69% to $9.07 billion and woven garments saw a 3.64% increase to $9.56 billion, though both categories missed performance targets.
Cotton and cotton products dipped 11.25% in the period to $78.65 million and leather and leather products declined 1.14% to $828 million, nearly 20 percent below the target set for the period.
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Since January, Bangladesh’s two major political parties have been in turmoil over the ruling Awami League’s win in the January 2014 election, which the opposing Bangladesh National Party (BNP) claims was rigged. The opposition has called for a nationwide blockade of road, rail and river transport, and intermittent hartals, or strikes, have set back shipments and caused delays. Another 48-hour strike was called this Tuesday and Wednesday.
Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told Reuters, “Buyers are expressing their concern over the current political violence. They are ready to give us more orders but political uncertainty preventing them from placing more orders.”
Garment exports for the full fiscal year are targeted at $26.9 billion, up 10 percent over last year’s $24.5 billion.
However, Reuters reported Azim said, “It won’t be possible to achieve the growth target for this current fiscal year.”
