Textile and clothing exports continue in red numbers, with a contraction of 23.6 percent from the United States.
Textile and clothing exports to the United States have fallen $131.3 million in the first eight months and are at the lowest levels in the last four years, confirms the Central Reserve Bank (BCR).
Of the more than 40 export markets in the textile industry, the United States is the main destination with a 71.3 percent share of the $594.49 million shipped by Salvadoran companies between January and August 2024.
The United States demanded $424.1 million of textile and clothing goods produced by Salvadorans, at least 23.61 percent lower than the $555.4 million reported in the same period of 2023.
The export figure is the lowest since 2020, when $409.2 million had been shipped amid the economy’s closure due to the covid-19 health emergency.
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The volume has also contracted at 6.9 million kilograms, 22.3 per cent, after accumulating just over 24.2 million kilograms sent by August. The cargo shipped to the U.S. The U.S. is the lowest since 2020.
Figures in red
The textile and clothing industry, one of the main formal employers, is the most hit by the reduction of demand from the US market. The El Salvador Exporters Corporation (Coexport) has explained that this was due to companies in the United States. They had overstock acquired in 2022 because of fear of shortage, as well as less consumer purchasing capacity due to inflationary pressure.
Total exports from the industry are 13.7 percent of the $4,319.4 million shipped nationwide.
Sales of this sector have contracted by $119.8 million, or 16.8 percent, compared to $714.2 million for the same period in 2023.
According to the BCR, knitwear and clothing are the largest line of exports, with $328.1 million shipped as of August, 23.3 percent lower than 2023.
The biggest drops in exports, meanwhile, in garments and clothing supplements, of 28.3 % after accumulating $22.7 million.
Electric micro capacitors – the star product of the industry – has also contracted by 19.7 %, with $106.1 million shipped between January and August 2024.