Abstract
Brazil is a major textile and clothing (T&C) producer, with a large and
dynamic domestic market,
indigenous raw material supplies (including
cotton and synthetic fibres) and significant future potential,
as exports
are still small compared to total output. BMI ranks it as number 15 in the
world in terms of
T&C manufacturing value added. In nominal terms we
estimate that to have been worth US$11.1bn in
2008. Like the rest of the
global industry, Brazil faces two difficult years ahead, marked by the
global
recession of 2009 and 2010. However, we believe the local market
will prove quite resilient and a number
of companies will experience the
comparative luxury of slower growth, rather than an absolute
contraction
in sales.
Overall, Brazil’s T&C value added will fall by 1.0% in
2009, but return to positive growth with
expansion of 3.6% in 2010. This
will reflect difficult international economic conditions, but also
Brazil’s
relative resilience. We see the recovery gathering pace
from 2011, with growth of 5.3%. The industry’s
trade performance
will also reflect the especially difficult international economic situation.
In 2009, total
T&C exports will fall 23.5% to US$1.63bn, while imports
will fall 16.7% to US$3.46bn. As a result the
T&C trade deficit will be
US$1.82bn.
| 
View Cart
