November Exports of Goods Reach $2.57 Billion, Marking Third Consecutive Monthly Increase
Published on: December 5, 2023.
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Merchandise Exports Show Positive Growth in November
November proved to be another successful month for merchandise exports, marking the third consecutive month of growth and indicating a potential turning point in the economic landscape. Official data reveals that export proceeds reached $2.57 billion, a significant 7.66 percent increase compared to the same month last year, which recorded $2.38 billion. Despite a 4.39 percent month-on-month decrease, the overall trend remains positive.
In the first five months of Fiscal Year 2024, goods exports rose by 1.93 percent to $12.17 billion, surpassing the $11.94 billion recorded in the corresponding period the previous year. This sustained growth is particularly promising for the textile and clothing sectors, hinting at a rebound from a year-long downturn. The full impact of this export resurgence is expected to unfold in the coming months.
Preliminary reports indicate that the increase in export value was primarily driven by semi-finished goods in the textile sector, while exports of value-added garments remained negative. Furthermore, the non-textile sector experienced unprecedented increases in export earnings for food goods, specifically rice and beef.
Challenges Persist in the Textile Industry
Despite the positive export trends, the textile industry still faces challenges. Over 1,600 textile units reportedly closed down during the previous government’s tenure. The current ministry has yet to announce a strategic framework to address various issues, including regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and product diversification.
Decline in Imports
On the import front, there was a notable decline of 13.47 percent in November, amounting to $4.46 billion compared to $5.15 billion in the same month last year. However, imports increased by 8.31 percent on a month-on-month basis. The import bill for July-November FY24 fell by 17.32 percent to $21.55 billion, down from $26.06 billion in the corresponding period of the previous year.
In Fiscal Year 2023, imports witnessed a significant drop of 31 percent, totaling $55.29 billion compared to $80.13 billion in Fiscal Year 2022. For Fiscal Year 2024, the government has projected an import target of $58.69 billion, representing an increase of $3.4 billion or 8.14 percent from the previous fiscal year.
Trade Deficit Narrows
The trade deficit has shown improvement, narrowing by 33.59 percent to $9.37 billion in July-November FY24 from $14.12 billion during the same months the previous year. In November alone, the trade deficit contracted by 31.72 percent, reaching $1.88 billion compared to $2.76 billion in the corresponding month last year.
