Exports rise to $24.3 billion, short of target

DHAKA: Country’s exports rose 5.9 percent to $24.3 billion in the year ended June, falling short of a government target as demand for garments from key Western markets waned, the country’s trade promotion body said Tuesday.

The total fell nearly 8.4 percent short of a target of $26.5 billion originally set on hopes for solid garment shipments to Europe and the United States, which account for almost 70 percent of sales.

Readymade garment sales for the fiscal year rose 6.56 percent from a year ago to $19 billion.

“Our growth was still good considering the weakening global economy which cut demand sharply,” said Shubhashish Bose, head of the Export Promotion Bureau.

For the new-year starting July 1, the government expects exports to reach $28 billion as it seeks to diversify into new markets such as Japan, China, India, Russia, Brazil and South Africa.

Bangladesh’s economy and exports have been boosted recently by a dramatic shift in global garment orders from China to lower-cost Bangladesh.

Bangladesh’s low labour costs have helped it join the global supply chain for low-end clothing, manufacturing garments for international brands such as Tesco, JC Penney, Wal-Mart, H&M, Kohl’s, Marks & Spencer and Carrefour.

Source: Reuters

BDST: 1940 HRS, JUL 10, 2012

AKA/MMA