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Moody’s Touts Bangladesh Garment Sector as Growth Vehicle

Bangladesh’s sovereign credit profile is supported by the robust growth of an economy bolstered by garment manufacturing industry exports, Moody’s Investors Service said in new a report.

However, weakening inflows of remittances from overseas-based workers could hurt consumption.

The country’s garment industry makes up roughly 70 percent of Bangladesh’s total merchandise exports, as measured in local currency terms, and accounts for significant foreign investment inflows. While the agricultural sector is still the biggest employer in Bangladesh, the garment industry employs more than 3 million workers and offers continued opportunity for labor productivity gains that will support future economic development and growth.

“Bangladesh will continue to invest in its garment manufacturing sector to capitalize on its strong comparative advantage of abundant low-cost labor,” said William Foster, a vice president and senior credit officer at Moody’s. “It will remain a leading global supplier of basic garments and the industry will continue to drive the nation’s growth, exports and job creation.”

Read more at Sourcing Journal.