BD apparel export to EU grows while showing a declining trend in coming months

  • Arif Uz-Zaman

Bangladesh's apparel export to EU have seen a significant growth 44.95% to $9.58 billion during the January- May 2022 period while the EU's global apparel imports grew by 24.37% according to the latest apparel import statistics by the European Statistical Office - Eurostat.

According to statistics, EU apparel imports from China reached $10.19 billion during the same period, an increase of 20.67% year-on-year, followed by Cambodia 32.68%, Pakistan 29.28%, Indonesia 25.36%, Vietnam 22.34% and Morocco 20%.

BD apparel export to EU grows while showing a declining trend in coming months

Figure: Bangladesh's apparel export to EU have seen a significant growth 44.95% to $9.58 billion during the January- May 2022 period.


However, the current geopolitical tension and record high inflation rate affecting the retail market where consumers are decreasing consumption in EU. As a result, brands are reducing the volume of its apparel items and holding or canceling apparel orders. It has a domino effect for the Bangladeshi exporters.

According to the industry insiders, European brands are affected for the recent Russia-Ukraine war and high inflation rate and incurred profit reductions because of conversions against strong US dollar.

"So far the import figure of the EU indicates a good position of Bangladesh's apparel in EU markets. But due to the recent geopolitical tension, retailers are struggling to adapt to an increasingly inflationary global market," Mohiuddin Rubel, Director of BGMEA.

"The retail sales of many European brands have declined which increased their inventory stock. Considering all these factors, our export to EU market might be showing a declining trend in the coming months," he added.

However, this is a short-term problem. We are optimistic that the recession will not last long. Although we may have to suffer one season. But it should pick-up by November-December or January. Even if the order decreases, there will be new buyers. Projections for the next season have been good with increased volumes, opined industry leaders.