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Exports falter on Euro debt crisis

Refayet Ullah Mirdha
Exports grew at a slow pace at 0.15 percent to $1.99 billion in March from a month ago for the ongoing debt crisis in the Eurozone.
The country’s export figure has been showing a slow growth over the last few months due to a drop in demand for the main export earner, readymade garments (both woven and knitwear), in the debt-ridden Eurozone.
Exports fell short of the monthly target by 15.38 percent in March, while such shortfall was 7.97 percent in February, according to data released by state-owned Export Promo -don Bureau yesterday. The monthly target forMarchwas$2.34billion.
Earnings fell by 7.23 percent in March, compared to the same month a year ago. This is the first time that the monthly earnings have gone in the negative territory in the current fiscal year.
Exports in July-March registered a 10.36 percent growth to reach $17.89
billion compared to the same time last fiscal year, data shows.
Bangladesh's knitwear exports rose by 5.92 percent to $7 billion and woven by 19.24 percent to $7.10 billion in July-March from the same period ayear ago.
Monoj Kumar Roy, an additional secretary (export) of the commerce ministry, said the prolonged debt crisis in the EU is the main reason behind slowed growth in exports.
“We might not achieve export targets at the end of the year. But we will be able to achieve more than 12 percent growth at the year-end,” he said.
Exports might make a rebound in the next few months as orders are shifting to Bangladesh from other countries, he said.
The commerce ministry set the export target at $26.50 billion at the beginning of the current fiscal year,
which is 14.50 percent higher than the amount exported in fiscal 2010-11.
“The target was not an ambitious one. We set the target considering all the factors.”
Nasir Uddin Chowdhury, first vice president of Bangladesh Garment Manufacturers and Exporters Association, said the target might not be achieved at the end of the year for sluggish apparel export.
In addition, orders in the EU fell for the ongoing debt crisis, he said. “But I am hopeful about the new export destinations as exports to those countries are increasing," he added.
AKM Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association, said productivity in the factories is not increasing despite rising costs of production.
“We could use only 40 percent of our capacity due to an inadequate supply of gas and electricity,” he said.
reefat@thedailystar.net