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In the July-February period of the current fiscal year, Bangladesh's garment exports to the USA decreased by 2.58 percent year-on-year to $5.46 billion. This decline is attributed to American retailers and brands reducing their imports of clothing items by 23 percent last year due to high inflationary pressures. Despite this setback, Bangladesh remains the third-largest garment supplier to the USA, benefiting from competitive pricing and strong trade relations, even with a high tariff of 15.62 percent.
Conversely, the European Union saw a 3.27 percent year-on-year increase in garment exports from Bangladesh, reaching $16.23 billion. Notable growth in exports to countries like Spain (8.68 percent), France (4.72 percent), Netherlands (14.55 percent), Poland (21.82 percent), and Denmark (32.81 percent) contributed to this rise, although exports to Italy and Germany saw declines of 0.93 percent and 11.63 percent, respectively.
In other markets, Bangladesh's garment exports to the UK and Canada grew by 14.64 percent and 1.81 percent, respectively. Exports to non-traditional markets also increased by 10.83 percent, with notable growth in Japan (7.12 percent), Australia (21.29 percent), and South Korea (17.16 percent). However, exports to India declined by 22.99 percent.
Despite challenges, clothing sales in the US have begun to recover, with February retail sales in clothing and accessories stores increasing by 0.51 percent month-over-month and 8.05 percent year-on-year, supported by a strong job market and rising real wages.