The Russia–Ukraine War which started on Feb. 24 this year is expected to affect Bangladesh’s exports to Germany in the medium to long term, diplomats, economists and business leaders said, an English-language newspaper in Bangladesh reported.
Bangladesh’s Ambassador to Germany, Mohammad Mosharraf Hossain Bhuiyan, told media that Bangladesh’s goods exports, especially ready-made garments, may slow down provided the Russia-Ukraine crisis lasts for a year.
With Germany’s economy set to shrink by 2% this year if the war in Ukraine escalates and an embargo on Russian coal, oil and gas leads to restrictions on electricity suppliers and the industry, the momentum of growth of Bangladeshi exports in this country is currently observed may slow down in the future. Germany is the second largest export market for Bangladeshi products.
German consumers will prefer meeting basic needs like food, medicine, fuel and housing and could reduce their consumption of ready-made clothes, he warned.
Bilateral trade between Germany and Bangladesh amounts to more than $7 billion, with Germany importing more than $6 billion worth of products, mainly textiles.
Fibre2Fashion (DS) News Desk