Textile industry provides little advancement in production in 2017

The textile and clothing sector shall provide a slight increase in production in 2017, after three consecutive years of negative variations. The Brazilian Association of textile and clothing (Abit) designs for next year a growth of 1% in textile production, reaching 1.72 million tons. In 2016, there will be a fall of 5.3% to 1.7 million tonnes. For the production of clothing, the forecast is for an increase of 1.3%. This year, the volume produced by the segment registers 6.5% indentation, totaling 6 billion pieces.

Clothing retailers, in turn, must present an increase of 2% in sales volume. This year, the category closes with fall of 10%, totaling 6 billion also sold pieces. The Abit designs for a total turnover of R$ 135 billion next year, up from R$ 128 billion in 2016, representing a high of 5.5%. This year, the sector registered a growth of 5.8% on 2015.

Rafael Cervone, President of Abit, says the industry''s recovery will be small because the scenario for the macro-economy is still a slow recovery. He adds that the biggest problem the companies face is the difficulty of access to credit to finance new investments. "Both companies as the population are extremely in debt. Lending is still expensive and scarce. I think the Central Bank is more concerned with returning inflation to the center of the goal of to get the country out of the hole, "said Cervone.

He added that the sector''s industries need to renegotiate debt and who asked an agenda with the President Michel Temer to discuss the matter. "The industries in the sector are with more than 20% of idleness. They can respond quickly to increased demand. But the recovery of consumption cannot be solved by itself, "said the Executive. The Abit also designs improve the textile sector jobs next year, with generation of 10000 new jobs. This year, the industry will close 30000 slots. In 2015, 100000 jobs were closed.

For the balance of trade in the sector, the Abit estimates a deficit of $3.3 billion in 2017, up from $3.1 billion this year, representing an increase of 6.4% compared to 2015. Exports should increase 5% in 2017, after presenting a loss of 4.8% this year. Imports already must register a growth of 10%. In 2016, imports retreated 4.7 percent.