Written by The Banking Post
Bangladesh’s readymade garment exports to the European Union dropped sharply in October, posting a 19.67 per cent year-on-year decline amid weaker apparel demand in the bloc and rising competition from rival suppliers.
Eurostat data released on December 16 show that Bangladesh shipped garment products worth €1.40 billion to the EU in October, down from €1.75 billion a year earlier. During the same month, the EU’s overall apparel imports fell 14.55 per cent to €7.37 billion from €8.63 billion.
The October setback followed a volatile trend throughout the year. Exports surged more than 61 per cent in January and maintained strong growth in February and March. Momentum slowed in April and turned negative in May before rebounding sharply in June. Moderate growth continued in July, followed by a contraction in August and a temporary recovery in September, ahead of the sharp fall in October.
Industry insiders said Bangladesh is facing mounting pressure in its largest export market as major competitors—particularly China—step up shipments to the EU after higher US tariffs redirected trade flows.
Fazlee Shamim Ehsan of the Bangladesh Knitwear Manufacturers and Exporters Association said demand conditions in the EU remain challenging, while Chinese exporters are aggressively expanding their presence by offering significantly lower prices to compensate for lost market share in the United States.
Despite the October dip, Bangladesh’s overall garment exports to the EU from January to October still recorded 9.45 per cent growth, reaching €16.67 billion compared with €15.23 billion in the same period last year.
Competitor performance remained strong over the first ten months of the year. China posted 7.15 per cent growth with exports of €22.24 billion, India recorded 8.83 per cent growth to €4.01 billion, and Cambodia saw exports surge 16.15 per cent to €3.73 billion, underscoring intensifying competition in the EU apparel market.
