The effect of the financial crisis on the garments sector

The crisis has completely cut off garment exporters from developing countries from access to credit, whether for working capital or investment capital. Export financing activities have also been paralysed.

84% of the garment exporters expect a decline in exports this year. Similar negative developments are anticipated for their export margins. Almost 60% expect to have to cut jobs this year, with 16% expecting a decline in employment of over 25%. 

Relevant Market Sectors

Garments