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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More on this topic

Textile Sector: Less Income, Less Jobs

September 2020

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.

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.

Textile Industry Seeks to Recover Lost Ground

July 2020

After the demand for clothing fell in the world's main markets due to the health crisis, Salvadoran entrepreneurs are confident that in the coming months it is possible to recover part of the sales initially projected for this year.

The social distancing decreed due to the covid-19 outbreak caused consumer preferences to change in the main markets, as the demand for comfortable clothing to be at home has now rebounded.

Salvadoran Textile Exports Rebound

October 2011

In the first eight months of the year maquila exports reported an increase in volume of 22.3% and 10.9% in value.

Data from the Central Reserve Bank shows that total exports reached $822.4 million up to August 2011.

"The executive director of the Chamber of the Textiles, Clothing and Free Zones (CAMTEX), Patricia Figueroa, said exports this year have already surpassed the levels recorded in 2008, which was considered to be an excellent year for the sector.

Salvadoran Textile Exports Up 21%

June 2010

Between January and April 2010 the country exported 21% more than in the same period of 2009.

A report from CAMTEX, the Chamber of Apparel and Textile Industries, detailed that in April 2010, Salvadoran exporters sold 20% than in the same month of 2009.

“Exports bound for Central America increased in $2.1 million”, reported the Central Bank of El Salvador (BCR), adding that exporting companies have recovered 4.336 jobs in these four months.

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