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Dhaka [Bangladesh]Aug. 10 (ANI): Bangladesh’s textile industry is currently facing major challenges due to the global recession and inflation, as retailers in the European and US markets are either delaying finished product shipments or delaying orders due to soaring inflation .
Bangladesh, the world’s second-largest garment exporter after China, faces long-term challenges, including domestic power shortages affecting production, while shipments are delayed in its main market due to soaring inflation, according to Bangladesh Live News.
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Prami Fashion Ltd; suppliers to Phillips-Van Heusen Corporation, parent company of fashion brand Tommy Hilfiger and Zara of Inditex SA, observed a 20% drop in new orders in July from a year earlier.
Bangladesh’s textile industry is facing unfavourable trade policies, internal security concerns, rising cost of imported inputs, in addition to supply chain disruptions and declining global demand following Covid-19.
Bangladesh’s energy crisis has increased costs for the country’s businesses.
One of the leading exporters supplying Gap Inc. and H&M Hennes & Mauritz AB reportedly claims it needs at least three hours a day to power its dyeing and washing units at its Gazipur manufacturing center on the outskirts of Dhaka. Bangladesh live news.
Electricity costs for generators are three times that of regional grid electricity.
According to estimates by the Bangladesh Garment Manufacturers Association (BGMA), at the beginning of the Covid-19 outbreak, Bangladeshi garment orders worth $2.87 billion were cancelled as of March 31, 2020.
This affected approximately 2.09 million workers and more than 1,048 factories. In the first week of April 2020, garment exports fell by nearly 84%.
Since then, RMG exports have not been able to achieve the expected level of growth, apart from Covid-19-related obstacles, due to constrained demand and a fundamental shift in consumer tastes, according to Bangladesh Live News.
The country’s RMG has grown substantially in recent decades, from $120,000 in fiscal 1985 to about $34 billion in 2019, according to the Bangladesh Policy Institute’s flagship publication, Policy Insights.
However, all of the growth has come from massive over-concentration in a few products and a few markets.
Bangladesh’s growth rate fell to 3.5% in 2020 and recovered to 6.9% in 2021 due to the economic disruption caused by covid-19, according to estimates by the Bangladesh Bureau of Statistics (BBS). (ANI)
(This is an unedited and auto-generated story from the Syndicated News feed, the body of the content may not have been modified or edited by LatestLY staff)
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