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Brazil’s economy has positive effect on textile, clothing

Industry News | January 31, 2012 | By:

Brazil’s fast growing economy and the population’s buoyant spending have resulted in a large increase in per capita textile and clothing consumption. The increase in consumption has led to a big boost in production, according to a report in the latest issue of Textile Outlook International from the business information company Textiles Intelligence.

Between 2005 and 2010, textile and clothing production in Brazil rose by 25.2 percent and this trend is expected to continue. In 2010, the country produced 2.25 million tons of textiles and 1.96 million tons of made-up articles, making Brazil the world’s fifth largest textile producer and fourth largest clothing producer.

Domestic demand has increased sharply as personal disposable incomes have risen, causing a 50 percent rise in fiber consumption per capita between 2005 and 2010. The increase in demand has been met by a surge in imports combined with rapid growth of domestic production.

Such fast growth has spurred acquisitions of new and more modern machinery by Brazilian manufacturers. As a result, the industry is becoming more capital intensive and has seen a reduction in its labor costs.

The industry also benefits from local sources of raw materials, especially cotton. Yields now are among the highest in the world, and Brazil has become a major cotton exporter.

Cotton continues to dominate fiber consumption by Brazil’s spinning mills and the country has become the world’s second largest producer of denim fabric.

The expansion of synthetic fiber output and consumption is expected to increase considerably in the future as a result of developments in the country’s oil industry. At the same time, costs are likely to be markedly lower and this should provide users of synthetic fibers in the textile and clothing industry with substantial benefits in terms of availability and costs.

Brazilian economic progress has tended to be erratic and bedevilled by inflation. Today, though, the economy appears to be on a steady and sustainable path, producing positive expectations for Brazil’s textile and clothing industry.

Source: Textiles Intelligence

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