For Bangladesh, its economic vulnerability is exacerbated further by a lack of economic diversification and export product concentration.
Bangladesh recorded export amounting to $3.83 billion in May this year, according to data released by the Export Promotion Bureau (EPB) on Thursday (02 June).
The export receipts couldn't surpass the $3.89 billion target set for the month. However, the export has been 23.24% high than the $3.10 billion of May last year.
Earnings in May fell compared to April when the country's export earnings crossed $4.73 billion. Country's export was above $4 billion for the last eight months, before falling from the mark in May this year.
Apparel shipment stumbled to $3.15 billion in May, which was the lowest earning in the last nine months, according to the EPB data.
Talking with The Business Standard, Fazlul Hoque, managing director of Plummy Fashions Ltd, one of the greenest knitwear manufacturers in the world said "due to Eid vacation apparel shipments were a litebite lower in May, as it was a small month to do business".
He also mentioned that the export volume still remains good compared with last year. But it might fall in the coming months as the order placement is going slow. He further explained that now the industry is coming back to the natural situation after enjoying overflue of orders due to the pandemic Covid 19.
The country's exporters posted 34.09% year-on-year growth in export earnings to $47.17 billion in the July-May period of the current fiscal year of 2021-22.
In April, the exports clocked the $4 billion mark with 51% year-on-year growth, raking in $43.34 billion in 10 months of the current fiscal year.
Due to the huge trade deficit in the current financial year, Bangladesh has also plunged into a large deficit in the current account balance of foreign transactions.
The country's trade deficit is growing sharply owing to a massive increase in imports compared to exports and the rise in prices of all kinds of products such as food items and fuels in the world market.
In the first nine months of fiscal 2021-2022, the trade deficit was about $25 billion which was 9.25% higher than that of the full period of the previous fiscal year. The deficit is around 64% more than the July-March period.
The trade deficit for the nine months of fiscal 2020-21 was $15.28 billion while it stood at $22.80 billion for the entire fiscal year.