Remittances Hit Six Month Low

Bangladesh's apparel exports to the US saw a 10.27% decline, totaling $4.09 billion during January-July 2024, down from $4.56 billion the previous year. Export volume also fell by 4.55%. Meanwhile, competitors like China and Vietnam outperformed Bangladesh, despite their own declines.

Local exporters are urging the government to lower cargo fares and increase cargo space for fresh vegetables and fruits to enhance export earnings. The Bangladesh Fruits, Vegetables & Allied Products Exporters Association (BFVAPEA) has appealed to various state agencies and Biman Bangladesh Airlines, citing challenges such as tripled cargo fares and limited space.

The Export Promotion Bureau (EPB) plans to publish revised export data after months of delay due to significant discrepancies between its data and that of the central bank for the last fiscal year. The revised figures come after discussions with multiple organizations, including the National Board of Revenue, Bangladesh Export Processing Zones Authority, Bangladesh Bank, and the Bangladesh Bureau of Statistics.

In August, remittances from Bangladeshis abroad surged nearly 39% year-on-year to $2.2 billion, offering some relief to the country’s foreign exchange reserves. 

This increase, 16.10% higher than July's $1.9 billion, helps counteract the previous month’s drop due to an internet blackout and bank closures amid protests over government job q

As of August 28, 2024, expatriate Bangladeshis sent $2.07 billion in remittances through formal channels, a significant increase from $1.43 billion in August 2023. July 2024 saw a drop to $1.91 billion due to disruptions caused by student protests, which led to bank closures and extensive internet outages.

Overall exports from Bangladesh fell by 4.34% year-on-year in FY24, reflecting a slowdown in industrial activities and the broader economy.  The country’s exports totaled $44.47 billion in FY24, down from $46.49 billion in FY23, according to central bank data sourced from the NBR, as the EPB under the Ministry of Commerce is currently not updating statistics due to a three-month halt for recalibration following earlier reported errors.