Research by CAL Bangladesh, a Sri Lankan capital market financial services company, shows that although Bangladesh’s garment industry is predicted to recover strongly in 2024, it may still face the risk of decline in the short term; therefore, it is expected that its Export volume will reach US$56 billion by 2026. The company operates financial brokerage and commercial banking in Bangladesh.
The study also shows that the slowdown in demand in major apparel markets will affect apparel exports in 2023. However, even if inflation will push up wages and natural gas shortages will increase production costs and squeeze profit margins, falling cotton prices due to reduced global cotton consumption may help ease price pressures.
Due to the impact of the Russia-Ukraine war, compared with exporters who regard the United States as their main market, the income of clothing exporters focusing on the European market may increase significantly. decline.
CAL Bangladesh believes that given Bangladesh’s dominant position in the field of cotton clothing and the strong global growth trend, the country will pay more and more attention to man-made fibers (MMF) field development; although the global growth rate is forecast to decline in 2023, Bangladesh’s garment exports are expected to increase at a compound annual growth rate of 5.3%, and the export value will reach US$56 billion by 2026.
