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El Salvador Textiles and Clothing Report Q4 2009Published by: Business Monitor International Published: Oct. 14, 2009 - 40 Pages Table of Contents
AbstractEl Salvador is a small textile and clothing (T&C) producer, which expanded its output rapidly after apeace agreement that ended a civil war in 1992. Growth has been based on the expansion of free tradezones (FTZs), which use competitively priced labour to make garments mainly for US buyers and retailbrands. BMI ranks it as number 55 in the world in terms of T&C manufacturing value added. In nominalterms we estimate that to have been worth US$2.18bn in 2008. Because of its reliance on US demand, theindustry is having a hard time through the recession of 2009 and 2010. However, local companies arevery entrepreneurial and can be expected to make the best of the available opportunities.Overall El Salvador T&C value added will fall by 11.1% in 2009, and again by 2.9% in 2010, reflectingvery difficult international economic conditions. We see a strong recovery setting in from 2011, withgrowth of 5.4%. The industry’s trade performance will also reflect the especially difficult internationaleconomic situation. T&C exports will slump by 22.0% this year to US$1.72bn, remaining flat in 2010 butrecovering in 2011 with growth of 5.0%. While the next two years will be painful, we believe the localindustry will remain well positioned and focused for the eventual upturn. Get Full Details About This Report >> |
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