State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Analysis of External Sector Performance
The previous two slides show that the trend of volume-driven growth is more
prominent for woven-RMG compared to Knit-RMG
➤ It will be appropriate to draw the conclusion that where domestic value addition is
higher (e.g., knit-RMG), competitive strength and bargaining power of exporters are,
to that extent, stronger
The aforementioned results indicate that brands and buyers had only
marginally absorbed the rise in the costs of apparels production
➤ The burden of increased production costs had to be borne primarily, and almost
exclusively, by Bangladesh's RMG entrepreneurs
The volume-driven export growth had important consequences for the bottom
line of the entrepreneurs and their (falling) profit margins
This is also likely having implications for workers who are possibly having to
meet higher production targets
The rise in productivity is not being realised through higher prices, although it
is helping Bangladesh's apparels to remain competitive. This also has
important implications for wages
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
34View entire presentation