Drop In Export Revenues of Bangladesh

The second largest country in the world that produces apparels for all major brands, after the number one country China, is said to lose billions of dollars in exports during the financial year of 2020. This is because of the order cancellations by major brands, basically the country received orders from two important entities in the industry and both of them have cancelled their orders. The entities are, ready to wear garments as well as knitwear manufacturers, due to lock downs occurring all over the world these entities have cancelled all orders. As a result of this many individuals in Bangladesh will lose their jobs and the economy of the country will take a huge blow.

Bangladesh has put a huge amount of efforts in building their garment industry, having around 4 million workers, operating in more than 4000 factoring all over the country. With the help of low wages and manufacturing rates Bangladesh has been able to capture a huge market in the fashion industry. The garment industry contributes over $34 billion in the GDP of the country and is 85% of the country’s exports. Since the lock downs have started to occur the industry has lost $3 billion and it is projected that it will lose a further $6 billion, if the situation prolongs over the time many factories will have to be closed. Recently Primark has confirmed their cancellation of orders whereas Gap and Zara have not yet confirmed their status upon the orders, but there is a good chance that they will also stop ordering.

In these tough times all industries are facing financial crisis, many factories are hanging by the thread but the question is “How long will that thread hold?”