Textile Industry with Subsistence Income

Against the backdrop of an imbalance in trade and restrictions decreed in several markets around the world, Central American companies in the garment business are operating and generating export earnings at levels that merely allow them to subsist.

Thursday, August 13, 2020

Data from the Office of Textiles and Apparel, of the U.S. International Trade Administration, say that between the first half of 2019 and the same period in 2020, Central American textile exports to the U.S. decreased by 34%, from $ 17,593 million to $ 11,553 million.

According to official figures, from January to June this year, Panama, El Salvador and Honduras, were the Central American countries that most reduced their sales to the United States, registering -49%, -48% and -47% variations, in that order. In the cases of Costa Rica, Nicaragua and Guatemala, were the least affected, reporting falls of 30%, 27% and 25%, respectively.

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Dean García, executive director of the Nicaraguan Association of the Textile and Clothing Industry (Anitec), told Laprensa.com.ni that "... the crisis being experienced with the coronavirus, where the whole region has been affected, is much harder than the one experienced in 2009."

Garcia added that at the moment "... companies are working to survive only, the pandemic has caused a global imbalance, affected all economies, and seeing the current panorama the problem is that the resurgence has not allowed the economy to stabilize and that' s affecting it strongly."

Also see "Covid-19: Forecast for the Textile Sector"

Among the changes that are taking place in the clothing market is that clothing stores have migrated to online sales to try to maintain their sales levels, however, revenues have not been enough and in most cases considerable losses have been recorded.

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