Exports rise by 12.5pc in first half of fiscal year

Bangladesh encountered a significant setback in its export growth in the aftermath of the quota reform movement and subsequent developments. The growth, however, bounced back soon after the student-led uprising despite different challenges. 

According to the national board of revenue (NBR), in each of the three following months, the country exported goods worth more than $4 billion, leading to a 12.5 per cent growth in export earnings during the first half of the fiscal year 2024-25.

The exports surged to $21.88 billion in total during the July-December period, marking a $2.74 billion or 12.52 per cent rise compared to $21.88 billion in the previous fiscal’s corresponding period. 

The figures include data of deemed exports from export processing zones (EPZs) and sample exports, though they constitute a small portion of the total.

Multiple exporters noted that the ready-made garment sector is recovering from the shocks of the Ukraine war and inflation, while purchase orders began to be diverted from China. The manufacturers received a good sum of purchase orders for the upcoming spring and summer seasons.

The major sources of foreign exchange earnings are exports, remittances, and foreign investments or loans. A robust flow of export earnings and remittances helps mitigate the crisis of forex reserves. In December, inward remittance reached USD 2.63 billion, a rise of 32.54 per cent compared to December 2023.

Bangladesh has been grappling with a dollar crisis for over two years, with a steady decline in forex reserves. Following the political changeover, the interim government took various measures, leading to a halt in the falling spree. 

On 24 December, the central bank reported a forex reserve of $24.97 billion. As per the international monetary fund’s (IMF) BPM-6 method, the reserves are now $21.8 billion, up from $18.6 billion inn the previous month.

According to the NBR, goods worth $4.13 billion and $4.11 billion were exported in Octover and November, respectively. In the last month alone, exports rose 18.11 per cent to $4.63 billion, compared to exports of $3.92 billion in December 2023.