Showing a steady improvement despite the recent flooding, export earnings also surpassed the strategic target fixed for July by 11 percent, according to the latest statistics complied by Export Promotion Bureau (EPB).

After achieving a six-year high export growth in the last fiscal year, Bangladesh exported goods worth $868.13 million in July 2004 as against $678.17 million in July last year. The target for this July was $782.06 million.

"Price index and export volume of Bangladeshi products rose 0.62 percent and 27.39 percent during the month," EPB Director Towfique Khan Majles told The Daily Star yesterday explaining the reasons behind the success.

According to EPB data, knitwear export recorded a remarkable 47.93 percent growth this July. Woven garments export also increased by 17.65 percent.

Export earning from knitwear products was $279.98 million in July 2004 while the amo}nt was $189.27 million in last July. Earnings fzom woven garments also rose to $401.96 million from last July's $341.67 million.

Mustafizur Rahman, research director of the Centre for Policy Dialogue (CPD), however attributed the high export performance to the global economic recovery. "This increasing trend will continue until December this year," he hoped.

The CPD analyst said global economy is recovering gradually and as a supplier Bangladesh has rightly grabbed the opportunities. He thinks export earnings may not fall because of the flood impact as feared by many.

Talking |o The Daily Star, Annisul Huq, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), attributed the July achievement in RMG export to an increasing supply to the EU market.

But the BGMEA chief regretted that export to the US has been on decline. Bangladesh has been relegated to the 10th largest RMG supplier to the US during January-July period of this year from the 5th position last year.

About the high growth in European markets, Huq said as euro, which is used by most of the EU nations, became stronger against US dollar in the last fiscal year, export earnings from these particular countries increased.

"GSP (generalised system of preferences) facilities provided by the EU countries for Bangladeshi readymade garments also played an important role," he added.

The BGMEA president does not think that export earnings from RMG sector might decline due to the recent floods across the country and the August 21 grenade attacks on an Awami League rally in Dhaka.

"Foreign buyers are concerned about the grenade attack but they have confidence on Bangladeshis' courage to |ackle such situation."

Among the other products that registered growth in July and also crossed the strategic targets are chemical products, jute goods, handicrafts, woven garments, knitwear, ceramic tableware, engineering and agricult}ral products.

Leather, electronics, petroleum byproducts, home textiles, footwear and bicycle recorded growth but failed to achieve the month's target.

Export earnings from tea, raw jute, textile fabrics and other primary commodities recorded negative growth and also failed to achieve the target.

Export earning hit a six-year high growth of 16.10 percent in the last fiscal year fetching $7.6 billion, which was 2.2 percent higher than the target of $7.4 billion. The government has fixed this fiscal year's export target at $8.5 billion