Though Bangladesh benefitted from a diversion of export orders from China, particularly in the European market, the global economy is slowing, particularly with challenging financial sector conditions in Europe and the United States, the two largest export destinations of Bangladesh, the World Bank’s Bangladesh Development Update said.

Official figures showed the country’s export earnings dropped for the first time in five months in March due to a slowdown in the global economy following the severe impact of the Russia-Ukraine war and the COVID-19 pandemic.

The country’s Export Promotion Bureau data showed exporters brought home $4.64 billion in March, down by nearly 2.5 per cent from a year earlier.

The overall export earnings were in the positive territory between July and March of the current fiscal, with receipts growing by 8.07 per cent year on year to $41.72 billion. The pace of growth has been, however, far below than posted in the last fiscal when it stood at 33 per cent.

Upsides are contingent on Bangladesh's ability to maintain export market share and take advantage of recession-induced shifts in preferences in advanced economies towards low-value apparels, electronics, and light engineering products, the World Bank added in its report.

Fibre2Fashion News Desk (DS)