SPANISH TEXTILE AND CLOTHING SECTOR FACES TOUGH FUTURE SAY MARKET EXPERTSJuly 30th, 2009
BY MARK ROWE
THE ADDED value created by Spain’s textile and clothing sector will fall by 8.8% in 2009, according to forecaster Business Monitor International (BMI). Currently, ranks Spain’s entire textile industry as 13th in the world in terms of textile and clothing manufacturing value added, which BMI priced at US$12.45 billion in 2008.
The recession also appears to be casting a medium-term shadow over the sector, with textile and clothing value (T&C) added also falling by 3.3% in 2010, reflecting difficult international economic conditions, said BMI: “We see a recovery beginning to set in only from 2012, with growth of 0.2%,” said a spokesman. “The industry’s trade performance will also reflect the especially difficult international economic situation. This year [Spanish] T&C exports will fall 7.8% to US$9.74 billion, with imports down 3.2% to US$17.76 billion. As a result there will be a T&C trade deficit of US$8.01 billion. The reason is a fast shrinking domestic market: Euromonitor estimates that the resulting contraction in the Spanish textile and clothing industry will cause make it shed up to 30% of its workforce over the next five or six years.