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Review of Readymade Garments (RMG) Sector of Bangladesh

(July-September FY'23)

Summary
* Total export earnings from Readymade Garments (RMG) stood at USD 10274.34 million in
July-September FY23 (Woven USD 4624.88 million and Knitwear USD 5649.46 million),
which was 8.14 percent lower than that of the previous quarter but 13.41 percent higher
than the same quarter of last year.
* RMG's total export earnings in July-September FY23 were 2.52 percent higher than the
quarterly target of USD 10021.66 million.
* The United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy,
Canada, and Belgium were the top destinations for Bangladesh's RMG exports during
July-September FY23. From these nine countries, Bangladesh earned USD 7422.70 mil-
lion from RMG, accounting for 72.25 percent of total RMG exports.
* In this quarter, RMGs’ net export (determined by subtracting RMG raw material import
value from RMG export value) was USD 5290.21 million or 51.49 percent of gross RMG
exports.

Readymade Garments (RMG) industry is one of the main- In FY22, the RMG sector contributed 9.25 percent to GDP.
stay of Bangladesh economy, experiencing a slowdown Bangladesh's overall RMG export earnings stood at USD
(8.14 percent) in the July-September quarter of FY23 as 42613.15 million, which was 35.47 percent higher than that
worldwide inflation has pushed up the living costs and forced of the previous fiscal year (Chart-1). The sectoral shares
people to reduce their expenditure on clothes in the key of export earnings in FY22 have been shown in Chart-2.
corresponding export destination countries.
RMG's export earnings stood at USD 10274.34 million dur-
However, the total export earnings of Bangladesh from the ing the first quarter of FY23. Despite downside growth in
RMG sector in the said quarter were USD 10274.34 mil- world-wide, RMG's export earnings escalated into 2.52
lion, which outperformed that of the previous year's corre- percent higher than that of the quarterly target. Woven gar-
sponding quarter and the quarterly target by 13.41 percent ments and knitwear contributed 37.01 percent and 45.21
and 2.52 percent respectively. Notwithstanding, the impe- percent respectively to total export earnings during the
tus of this sector may still be uneven as Russia’s invasion quarter under review (Table-1). Besides, in this quarter,
of Ukraine triggering the global gas crisis, upside inflation, the contributions of non-RMG products to total export earn-
tightening financial conditions and further US dollar appre-
Source: Export Promotion Bureau
ciation worldwide.
Source: Export Promotion Bureau

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