Bangladesh Aug exports soar 32% on clothing sales

DHAKA (Reuters): Bangladesh’s exports rose 32.40 percent in August from a year earlier to $2.376 billion, led by strong demand for the country’s ready-made garments, the Export Promotion Bureau said.

Exports surged 41.5 percent in the fiscal year that ended in June to a record $22.9 billion, boosted by clothing sales after a dramatic shift in China’s orders to the lower-cost South Asian country.

Bangladesh’s low labour costs have helped it join the global supply chain for clothing.

Exports for July-August, the first two months of the current fiscal year, were up 30.44 percent at $4.7 billion.

Earnings from knitted textiles in July-August rose 29.6 percent from the same period the previous year to $2.1 billion, while woven garment earnings rose 33.6 percent to $1.76 billion.

Bangladesh has set its exports target for the current fiscal year, at $26.3 billion, up 15 percent from 2010-11, a slower pace of growth than the last year.

Bangladesh makes garments for international brands such JC Penney , Wal-Mart , H&M , Kohl’s , Marks & Spencer and Carrefour .

But officials said the outlook is still unclear due to uncertainties on debt-ridden Europe and the United States, which take in close to 70 percent of Bangladesh’s total overseas sales of garments.

“Exports are good after massive growth in the last fiscal year,” said Jalal Ahmed, head of the Export Promotion Bureau.

“We may get a clear idea of exports growth after September or October figures,” he told Reuters.

The garments sector, which employs 3.5 million workers, is one of the main foreign exchange earners for Bangladesh’s $110 billion economy, along with remittances, which have recently seen slower growth mainly due to turmoils in the key Middle eastern and north African countries.

Remittances from more than 7 million Bangladeshi working abroad and a robust garments sector also played key roles in lifting nearly 13 million people out of poverty over the five years to 2010.

Despite strong exports, the country’s balance of payments has come under pressure from soaring import costs, which analysts said could jeopardise the country’s target for economic growth of 7 percent in the 2011-2012 fiscal year. ($1=74.50 taka) (Reporting by Ruma Paul; Editing by Anis Ahmed)