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Slump in the apparel industry

Economic Tag: Export

Bangladesh’s garment sector might be severely impacted by the anticipated global downturn this year, with a 3 percentage point decline in export growth for clothing by 2023. This will put more strain on the already thin foreign exchange reserves and drag down GDP.

Additionally, the harm could be greater if ongoing power disruptions in the nation’s industries prompt foreign customers to place their orders elsewhere. Every 1% slowdown in global growth results in a 4 percentage point decline in Bangladesh’s export growth for clothing.

The increase in apparel shipment growth slows to 24.4% in 2023 from 27.6% in 2018, which suggests $1.5 billion less revenue than if shipments were kept at their previous pace. The biggest impediment to growth in 2023 will be a decrease in garment shipments, which is expected to reduce GDP growth by 0.8 percentage points.

 

 

Source for more details:

The Business Standard

 

 

 

Source for more details:

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