Textile Sector: Less Income, Less Jobs

After the impact caused by the covid-19 outbreak, Nicaraguan businessmen in the sector estimate that in the first seven months of the year the maquila industry have stopped exporting close to $300 million and have had to lay off some 6 thousand employees.

Thursday, September 17, 2020

The drop in demand in the United States, which is one of the main destination markets for exports of clothing made in Nicaragua, explains part of the drop in income for companies operating in the country.

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According to data from the Office of Textiles and Apparel (Otexa), between January and July 2020, Nicaraguan textile exports to the U.S. amounted to $723 million, 28% less than what was reported in the same period in 2019.

Dean Garcia, executive director of the Nicaraguan Association of the Textile and Apparel Industry (Anitec), told Laprensa.com.ni that they maintain "... a non-aggressive policy regarding the placement of work orders because there is still a concern that there will be a rebound and a return to the same situation as in April (when the worst falls were reported), with large amounts of inventory in their warehouses, so they only ask for what they sell."

Garcia added that "... this crisis is very severe, for example, before the pandemic, exports in value were 160 to 170 million dollars per month, now we are at 114 million, it is good because it is a little higher than previous months, but in order to recover what was lost in previous months we would have to take out more than $200 million and it is very difficult, I think that with costs we will reach $1 billion this year."

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