One year ago, as we looked toward 2024, our garment exports were a remarkable $47 billion. We were optimistic, setting our sights on reaching $50 billion in exports. However, discrepancies in export data led to substantial shifts in our calculations and projections. When we received the revised figures, we found that our garment exports from January to November 2024 had decreased to $34.71 billion, though this figure was still 6% higher than the revised numbers for 2023.
As 2023 ended, we faced a climate filled with uncertainty. Challenges such as minimum wage protests and factory shutdowns in October 2023 loomed large. In response to these issues, we made the tough decision to raise the minimum wage by 56%, effective December 2023. While this was a difficult but necessary step for our industry, we held onto the hope that it would improve working conditions and that, with buyers' support, increased productivity and enhanced value addition, we could navigate these turbulent waters.
The beginning of the new year brought its own challenges as we implemented the new wage structure, all while uncertainty surrounded the 12th National Election. This climate directly impacted our investments and growth trajectories, leading to a modest growth rate of only 1.45% in January.
February turned out to be particularly challenging; just a month after the national elections, we encountered a drastic 60% reduction in export incentives. This sudden decision, made without adequate consultation or preparation, plunged our already struggling industry into a deeper crisis.
On top of these domestic issues, global conflicts, economic instability, and fluctuations in the oil market exerted continuous pressure on buyers and consumers throughout 2024. Although inflation began to decline towards the end of the year, reduced purchasing power affected buyers' ability to purchase fashion items in the international marketplace. The UNCTAD forecasted a 5% decline in global garment trade by the end of 2024, resulting in a continuous drop in the unit price of our garments throughout the year, despite expectations that rising wages would positively influence pricing.
Alongside wages, other production costs surged due to increasing prices for gas, electricity, and transportation, coupled with rising bank interest rates, which now hover between 14% and 15%. Many small and medium-sized enterprises (SMEs) faced significant losses, leading to closures across the industry throughout the year.
During these challenges, the July Revolution instilled hope for our nation, yet the industry and economy paid a heavy price. The unrest that began in mid-July, paired with a nationwide internet blackout, disrupted critical marketing activities for winter and Christmas sales. Supply chains and production schedules were thrown into turmoil, forcing the diversion of many confirmed orders to other countries. As a result, our July exports saw only a modest increase of 2.89% compared to July 2023, which marked a decline of 1.55% compared to July 2022. August 2024 fared slightly better, with exports rising 7.20% compared to August 2023, but still dropping by 6.88% compared to the same month in 2022.
As September, October, and November rolled in, we encountered additional challenges, including labor unrest, factory closures, security concerns, and banking crises. These issues severely disrupted supply chains tarnished the industry’s reputation, and eroded buyer trust. Nevertheless, we continued our efforts to normalize production and shipping schedules. Thankfully, we experienced significant growth in exports during these months, particularly buoyed by an extraordinary rebound in apparel imports from the EU and USA, which jumped by over 20% in October.
Overall, our garment exports from January to November 2024 grew by 6.23% compared to the same period in 2023, but this still represented a decrease of 7.17% compared to the same timeframe in 2022. While this reflects satisfactory year-over-year growth, it is not significant enough considering the industry's capacity. Thus, 2024 has proven to be a year rife with crises and challenges. However, I remain hopeful that 2025 will usher in a revival for the global garment trade and improve our export performance.
Despite the hurdles faced throughout 2024, we have successfully sustained our commitment to industrial sustainability. In 2023, 24 garment factories earned USGBC LEED certification. This number grew to 26 factories in 2024, with 16 receiving platinum and 10 achieving gold certification. In total, we now boast 232 green factories, showcasing our dedication to sustainable growth.
Looking ahead, I believe we have the potential for qualitative changes as we diversify our product lines and explore new markets. Significant investments in activewear and non-cotton products are emerging within the industry. Nevertheless, the ongoing crisis in sustainable energy has hindered new investments, causing previous investors to struggle.
We are nearing the finish line for graduating from LDC status, with only two years left. This raises an important question: how well have we prepared to tackle the impact of this transition? Throughout 2024, various events have hindered our ability to achieve the desired momentum in business and investment. Currently, we find ourselves falling short in crucial investments and preparations needed to confront the challenges that accompany our graduation from LDC status. If the graduation timetable proceeds as planned, our economy may encounter significant hurdles.
While I am optimistic that 2025 will mark a significant comeback for the global economy and our apparel business, I sincerely hope our nation overcomes the ongoing crises, particularly the challenges within the banking and financial sectors. Achieving sustainable improvements in industrial relations and establishing stable political and economic reforms are essential for restoring our confidence as we dedicate ourselves to the immediate future. I truly believe that these improvements will take shape in 2025.
Mohiuddin Rubel is a former director of BGMEA . The views and opinions expressed in this article are those of the author.