Exports continued to recover in September from their dramatic slump in July, with double-digit growth in the knitwear sector leading the improvement. According to figures released yesterday by the Export Promotion Bureau, export earnings in September rose 9.77 per cent in the same period a year earlier to $1.042 billion. However they remained around 5 per cent behind government targets for the month.

In July total exports were down 21.08 per cent, largely due to weakness in the garments sector, blamed on a shortfall in orders caused by the political unrest at the end of 2006 and the beginning of 2007. Much of this decline has now been made up, with total exports down just 5.37 per cent in the three months to September 30.

Anwar-ul-Alam Chowdhury Parvez, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, “We are not worried and we are confident that we will recover from the downward trend by the year-end.”

He said both knitwear and woven exporters have received significant orders recently and therefore the overall exports from the apparel sector will gain momentum by December.

Although the EPB does not provide a monthly breakdown of each export sector results, the figures point to year-on-year growth in the knitwear sector of around 18 percent in September. Woven garment also appeared to have stabilised with export levels in September at around the same level as last year.

However there is still ground to be made up in both sectors after the weak start to the fiscal year. In the three months to September 30 woven exports were down 11.86 per cent to $1.116 billion, with knitwear down 3.61 per cent to $1.204 billion.

September’s figures back comments made earlier this week by Fazlul Haque, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), who expressed his optimism that export earnings from the knitwear sector were gaining momentum.

Haque said he was not concerned by the recent decline in exports, pointing to the increase since August in the Utilisation Declaration (UD), made by knitwear producers. The UD tracks the amount of raw materials being used in the sector.

According to the BKMEA, UD rose by 10 percent in August, 40 percent in September and 18 percent in October compared to the corresponding months last year.

“Although the export target for the knitwear sector set for the current fiscal is ambitious, if the growth rate continues we can reach the target,” the BKMEA president said.

The export target for the knitwear sector for the current fiscal year is set at $5.5 billion.

Tea, vegetables, agro-processed foods and flowers have all performed well in the first quarter of the fiscal year — exceeding their targets. Raw jute, footwear, and jute goods also recorded growth, but failed to reach export targets.