Bangladesh’s Share in Global Apparel Export is on the rise

20 December 2022: Bangladesh had its share in global apparel trade grow by 2.23% to 6.40% in 2021, according to World Trade Organization (WTO) data published recently. The WTO report also noted that economies such as Bangladesh and El Salvador that witnessed a boost in exports of other commercial services like computer services jumped up in rankings in 2021. According to the report, Merchandise exports of Bangladesh increased from USD 24 billion in 2011 to USD 39 billion in 2019. Commercial services exports of Bangladesh grew from USD 1.4 billion in 2011 to USD 3.4 billion in 2020, despite the pandemic.

Bangladesh recorded a widening trade deficit. It almost doubled from USD 15.3 billion in 2011 to USD 27.5 billion in 2018 but has decreased to USD 23.8 billion in 2020. Top-5 export destinations accounted for more than half of all goods exports of Bangladesh in 2020. The biggest market was the European Union, accounting for roughly a third of its goods exports. Textiles and clothing represented more than 90% of its goods exports.

Bangladesh shipped $34 billion worth of garments last year. The share of Bangladesh in global apparel business was 6.26% in 2020. World Trade Statistical Review 2022 showed that Bangladesh retained its second position worldwide after China. China retained its top position grabbing a 32.8% market share and exported apparel worth $176 billion, the WTO data said.

BGMEA plans to elevate the country’s share in the global apparel business to 10% by 2025 from the current 6.26%. Garment shipments clocked a 35.47% year-on-year growth in fiscal year 2021-22, netting $42.61 billion. Due to a lack of market diversification, 73% of Bangladesh’s garment exports are limited to nine countries. The BGMEA is also hoping for Asian markets to become major export destinations alongside the existing top three destinations, namely the European Union, the USA and Canada.