State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Analysis of External Sector Performance
It is to be noted that the growth rate of knit-RMG (with its relatively
higher domestic value addition) has been higher (25.9%) in the first five
months of FY22 compared to the woven-RMG (19.3%)
➤ This would mean higher growth of net export earnings from RMG as against the
growth of gross RMG exports on account of higher domestic value retention
However, robust RMG growth rates conceal a disquieting message!
It needs to be taken into cognisance that the growth of RMG in terms of
export earnings is the combined result of price effect and volume effect
➤ In this connection, it is pertinent to recall that the price of cotton in the global
market has increased considerably in recent times
➤ Average price of cotton during the Jul-Oct 2021 period was 47.9% higher
compared to the corresponding period of 2020, which had a had a knock-on
effect on prices of both yarn and fabrics
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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