In 2023, Bangladesh’s apparel exports to the United States, its largest export destination, experienced a significant decline of 25% to $7.29 billion due to high inflation attributed to the Russia-Ukraine war. This decrease marks a stark difference from the $9.72 billion in exports to the US in 2022. Furthermore, data from the US Department of Commerce’s Office of Textiles and Apparel (Otexa) indicates that Bangladesh’s overall apparel imports dropped by 22.04% to $77.84 billion, down from $99.86 billion the previous year.
The decline in Bangladesh’s apparel exports to the US in 2023 also resulted in a 28% decrease in volume, plummeting to 2.25 billion square meters from 3.13 billion square meters. Bangladesh Garment Manufacturers and Exporters Association President Faruque Hassan attributed this downturn to the global apparel market’s volatility, which was driven by heightened inflation caused by the Russia-Ukraine war. He also mentioned that the US, as the largest apparel importer, decreased consumption due to the high inflation. Despite this challenging landscape, the BGMEA president expressed hope for a brighter market in the near future, with anticipated stability in US inflation and interest rates potentially leading to a market rebound.
Bangladesh’s position as the third-largest apparel exporter to the US market behind China and Vietnam remained unchanged, despite experiencing a decline in its share of the market from 10% in 2022 to 9.37% in 2023. Similarly, other major apparel exporters such as China, Vietnam, India, Indonesia, and Cambodia also saw significant decreases in their respective export figures to the United States in 2023.
