Bangladesh: Apparel exporters 'bracing themselves' for anticipated decrease in work orders from global buyers
"Bangladesh garment makers bracing for challenging times, reports claim", 7 July 2023
Apparel exporters in Bangladesh are bracing themselves for a challenging period in the next six months as they anticipate a decrease in work orders from global buyers.
This is as per media reports, which, citing the apparel makers underlined inflationary pressures along with subdued customer sentiments have contributed to this outlook even if there is some optimism among exporters that the situation may improve December onwards.
Speaking to the media, Managing Director of Plummy Fashions Ltd., Md Fazlul Hoque, expressed a cautious view on the prospects of garment exports in the near term. He stated that the economies of the European Union (EU) and the United States have yet to exhibit strong performance, dampening the outlook for the next six months.
These two regions are the primary destinations for Bangladesh’s apparel exports, accounting for approximately 85 per cent of the country’s shipments.
One positive development, however, is the decline in consumer prices in key markets, which experienced a surge last year due to escalating energy prices driven by the Russia-Ukraine conflict.
However, local suppliers are concerned about potential increases in their cost of funds following the Bangladesh Bank’s decision to remove the 9 percent lending rate cap, which had been in effect from April 2020 until June of this year.