Textile and clothing markets around the world are expected to remain subdued for the remainder of 2012 according to the latest issues of Textile Outlook International released by Textile Intelligence.
The report points out that considerable uncertainty in the global economy and debt crises in the eurozone continues to negatively affect business and consumer confidence. Forecasts suggest that the European Union (EU) economy will suffer a second-dip recession in 2012 with the Gross Domestic Product (GDP) down in real terms by 0.5 percent. The first quarter of 2012 saw EU clothing imports down in volume by 12 percent.
Clothing imports to the United States in the first quarter of 2012 were down by 3.9 percent. A partial recovery is predicted for 2013 with a slight improvement in GDP by 0.8 percent.
According to the report, European textile manufacturers view is that the effects of the economic turbulence will continue to have an adverse effect on trading conditions for the remainder of 2012.
The report is more optimistic, however, with respect to the U.S. market. In 2012, U.S. GDP growth is expected to accelerate to 2.2 percent from 1.7 percent in 2011. It is expected to fall back slightly in 2013 to 2.1 percent.
Depressed market conditions in the EU and the United States had a negative effect on textile exports from several Asian countries in the first quarter of 2012. In Indonesia, textile and clothing exports fell by 5.2 percent after rising by 18.2 percent in 2011. In Thailand, exports saw a sharp decline of 15.3 percent and in the Philippines, clothing export growth slowed to 1.1 percent after rising 11.4 percent in 2011. India has seen clothing exports fall by 11.9 percent in the 2011/12 financial year.
On the positive side, the report comments that immerging markets from BRIC countries - Brazil, Russia, India and China - will continue to be the key to sustainable global trade growth over the coming years. For example, it is expected that the domestic for textiles and clothing in India will increase by 169 percent over the next 10 years. Reprinted from woolnews.net