Bangladesh’s textile sector, despite periods of strong performance, is now feeling the full impact of the global recession. The stalled manufacturing climate has intensified vulnerabilities across the global fibre market.
Global Apparel Sales Plummet Amid Recession
Apparel sales in the United States dropped by 63% year-on-year in May, following an even sharper 87% decline in April. The European Union experienced similar shocks: retail sales of clothing, fashion, footwear, and leather goods in the EU27 fell 55% in March and 64% in April. Spain reported a dramatic 90% collapse in April sales, while Sweden recorded a 38% decline.
The collapse in consumer spending has hit retailers hard. In the United States, five major national retailers—with combined revenues of more than $22 billion—filed for Chapter 11 bankruptcy by the end of May. Global fashion giants such as Gap and Inditex also reported significant operating losses in the first quarter.
This downturn has severely impacted international trade flows. The value of U.S. apparel imports declined 19% year-on-year from January to April, and by 42% in April alone. Europe saw a 13% drop in apparel imports during the first four months of the year, with a steep 38% fall in April compared to 2019.
These figures highlight the immense strain facing global textile and apparel supply chains, exacerbating challenges for Bangladesh and other exporting nations.
