Exports from the clothing and textile sector fell 18.1% in 2023 compared to 2022, and for 2024 they foresee a positive but moderate behavior with a growth of 5%, according to managers of that productive sector.
Carlos Arias, president of the Clothing and Textile Industry Association (Vestex), an entity attached to the Guatemalan Association of Exporters (Agexport), indicated that the closing figures for the sector’s exports in 2023 stood at US$1,848.8 million. , for a drop of -18.1%. Meanwhile, the country’s total exports also fell -9.3%, reaching US$14,195.7 million, according to preliminary data from the Bank of Guatemala (Banguat).
The manager explained that the sector had come from two record years of exports, following the drop recorded in 2020, the first year of the pandemic, when US$ 1,447.8 million were sent and the drop was -11.9% compared to the previous year. to that one.
In 2021, foreign sales were recorded for US$1,932.8 million, with a growth of 33.5%, and in 2022 they reached a record amount of US$2,257.4 million, for a growth of 16.8%.
“For 2024 we have moderate optimism and we want to be careful, but at the same time we are optimistic,” said Arias. Expectations are US$1,940.4 million, for an increase of 5%.
For what is this
Arias mentioned that one of the main factors that influenced these results is the inflation that affected both Guatemala and most of the world. Due,
The United States reduced imports of clothing and textiles in general by 19%, and that also included lower purchases from Guatemala, so 2024 is expected to be a better year for that country’s economy, considering that a recession was expected late 2023 and early 2024, which has not happened.
“Consumers continue to buy and following the pandemic they dedicated themselves to spending on experiential trips. “We have a set of economic situations that we believe will benefit us and we are also very optimistic regarding 2025.”
On the other hand, he cited data from Banguat, according to which Guatemala’s economic growth for this year is estimated at around 3.5% and general exports, with a growth of 4.2%. While for clothing and textiles the aforementioned 5% would be expected, to reach US$1,940.9 million.
For now, in January 2024 the country’s exports increased by 1.8% and those of the sector by 0.4%. Added to this is that there are new buyers who are placing production orders for various product lines, such as flat-woven clothing: work clothes or uniforms, as well as more sports and athletic clothing, it was indicated.
Strategies and investments
Faced with this situation, industrialists stated that the industry is promoting three strategies:
- The specialization of market niches.
- High added value products.
- Investment attraction.
In this last aspect, from 2020 to 2023 there have been investments of US$250 million and 26 foreign companies have expressed their interest in settling in the country; Of these, 15 already have some level of progress in their analysis and if finalized, investments might reach US$200 million. Currently the sector is serving companies from China, Colombia, India, Sri Lanka, Korea, the United States, Taiwan and Vietnam.
The country has advantages such as strategic geographic location, macroeconomic stability and boost to exports, although there are challenges to be resolved, which include improvements in the country’s conditions, Arias said.
The main challenges are port and road infrastructure, legal certainty, services such as electricity and a stable political environment. While in added value, changes are observed in consumer behavior that are focusing more on value garments, an aspect that represents opportunities for Guatemala, which is distinguished in that aspect.
Impulsan Apparel Sourcing Show
From May 21 to 23, the 31st edition of the Apparel Sourcing Show (APSS) will be held in Guatemala, which brings together the offer of the clothing and textiles cluster, with national and international participation.
This fair shows the entire supply chain of the textile and clothing industry, its capabilities and the high value-added products in which the region specializes, explained Karla Madrid, director of the APSS.
In 2023, deals worth S$10 million were completed during the event and in 2024 it is expected to grow between 20 and 30%, so it might be US$12 million and US$13 million.
Between 4,800 and 5,000 participants are expected from the United States, Peru, Colombia, Ecuador, Mexico, Canada, Vietnam, Korea, China, Sri Lanka, Central America and others, who will visit an exhibition floor with more than 177 stands. , networking, seminars and workshops.
The area is made up of textile companies (25%), screen printing and sublimation (19%), services and accessories (21%), Korean pavilion (6%), Chinese pavilion (3%), institutional entities (4%), among others.
The event will take place at the Grand Tikal Futura Hotel, admission is free and those interested can register and obtain information on the site
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