TE24 Bangladesh Desk:
After recovering quickly from the devastation caused by the Covid-19 pandemic, Bangladeshi garment manufacturers are now expecting a slowdown as sales to key customers such as Walmart are hit by rising inflation. Garment industry accounts for more than 80 percent of the total.
Exports for Bangladesh, which on Sunday (July 24) became the third South Asian country after Pakistan and Sri Lanka to seek a loan from the International Monetary Fund, were hit by dwindling foreign exchange reserves and a widening trade deficit.
Bangladesh’s US$416 billion (S$577 billion) economy has been one of the world’s fastest-growing for years, but rising fuel and food prices fueled by the Russia-Ukraine war have inflated its import bill and current account deficit. Walmart, a US bellwether for the retail sector that caters to cost-conscious shoppers, on Monday cut its full-year profit forecast and vowed to cut prices on clothing and general merchandise more aggressively than in May to reduce a spring backlog.
“Orders have gone down,” said Mr Farooq Hasan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Bangladesh’s garment exports finally contracted in July 2021, when global Covid-19 cases dominated. Since then, sales have skyrocketed, hitting multi-month highs of 60% in March and 41% in June.
According to BGMEA, Siddiqur Rahman is the owner of Laila Styles. says We supply Walmart, H&M and Zara. “Christmas demand may increase orders from October, but when retailers are full, they will stop placing orders.
About 60% of Bangladesh’s total garment sales are in the European Union. is occupied by, followed by the United States, which accounts for about 20%. Other buyers are Japan, Australia, India and China.
The industry hopes that selling to smaller markets will help it survive the current downturn without significant losses as it tries to streamline the manufacturing side of its business. Abdas Salam Marchedi, managing director of Walmart, VF Corp, Zara, American Eagle Outfitters and more. “It depends on how long the war lasts.
