Textile Sector: Poor Outlook

Uncertainty over a possible second wave of covid-19 cases globally will prevent Salvadoran textile industry exports from recovering for the rest of 2020.

Tuesday, June 23, 2020

Official data show that from January to May 2020, El Salvador's exports in the textile and clothing sector amounted to $619 million, an amount that is 42% lower than the $1,072 million registered in the same period in 2019.

See "Covid-19: Forecast for the Textile Sector"

Although several global economies have begun to reactivate their productive activities, the Chamber of the Textile, Clothing and Free Zones Industry of El Salvador (Camtex) forecasts that foreign sales will not recover for the rest of the year.

José Antonio Escobar, president of Camtex, told Elmundo.sv that they do not expect "... a rebound in the coming months with the return of activities in the economic reopening plan, but rather that the fall in exports is expected to be between $700 and $800 million this 2020. The recovery is not so fast, apart from other incidents in the markets', such as the paralysis of tourism and the uncertainty of a second wave of coronavirus cases."

Regarding employment levels, Escobar added that "... Our current estimate is that we have lost around 20,000 direct jobs as a result of this situation. Of course, our ambition would be to get them back, which will take some time. Having lost direct jobs in our sector, there are also indirect ones that have suffered in other sectors because of the same chain."

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