Exports by the Brazilian textile industry may be damaged by the depreciation of the US dollar, after last year’s record-breaking export sales of US$ 2.080 billion.
This warning was sounded by the vice-president of the Syndicate of Spinning and Weaving Industries of the State of Rio de Janeiro, Antonio César Berenguer de Bittencourt Gomes, during the 6th Fashion Business Fair (spring/summer 2006) at the Museum of Modern Art in Rio.
Berenguer observed, however, that this situation will not materialize in the short run, thanks to the record-breaking production of cotton, at a low price, helping to keep it competitive internationally.
He estimated that shipments abroad of Brazilian products should increase around 10% this year, whereas the previous forecast was for growth of up to 30%.
The textile industry has invested as much as US 1 billion per year on modernization (equipment purchases), according to Berenguer.