With 22.75% share of the EU’s total RMG import Bangladesh remains the 2nd largest apparel import source for the EU after China (26.27% share).
According to the latest data, EU’s apparel import from world in the mentioned period has declined by US$ 322 million, or 2.03% compared to the corresponding period of 2022. In terms of quantity (measured in kilogram), EU’s clothing import had a stiff downturn by 10.09%, which is 70 million KGs less than Jan-Feb 2022.
During the mentioned period, import from China declined by 13.11% in value terms, which means US$ 616 million decline. In terms of quantity, the decline is recorded 16.42% or 32 million KGs.
In contrast, EU’s import from Bangladesh increased by 5.47% or US$ 183 million during the mentioned period. However, import from Bangladesh saw a decline in quantity term by 3.02%, or 6 million KGs.
Among the top ten apparel-sourcing countries Bangladesh, India, Vietnam and Pakistan have shown positive growth while EU’s import from other countries including Turkey has declined.
On the other hand, EUs import from the top sourcing country China has declined by 13.11% year-over-year and reached US$ 4.08 billion. EU’s imports from Turkey the 3rd largest apparel source have declined by 11% year-over-year. During January-February 2023, EU imported US$ 1.82 billion worth of clothing from Turkey.
The global economy and trade is showing the sign of depression which is clearly affecting our Europe market as can be seen in the data. Though Bangladesh is doing relatively better than the major competitors, the growth we had in first two months of 2023 is significantly caused by inflated price of raw materials and production cost hike, export in absolute volume term has declined. However, we need to cautiously monitor the trend in our major markets and should focus on alternative strategy. i.e. reduce overconcentration on markets and products, and have a balanced investment plan in backward and forward (innovation & design development) linkages.
