Asian textile exports to the European Union (EU) are likely to plummet on account of a drop in consumer spending in Europe because of the inflationary pressures out of the energy crisis due to the Russia-Ukraine war amidst likely withdrawals of GSP+ facility for non-compliance of new regulations on human and labor rights.
The textile associations both in South and Southeast Asia are foreseeing tough times ahead in 2023, saying that the declining trend has already started creeping in their exports from August onwards.
A weak demand throughout Europe has hit hard the textile exports, plummeting across Asia. Right from Pakistan to Vietnam, the export figures are dwindling fast with no immediate possibility of reversal.
Meanwhile, World Bank, International Monetary Fund, and Finch Solutions besides leading banks across the region are assessing a drop in growth patterns, right from the gross domestic production (GDP) to exports in the region.
Already, the tumbling currencies against the US dollar have played havoc with the cost of living in the region, which has worsened by dampening spending in the EU and the US. World Bank has warned of a global recession next year, followed by a string of financial crises in emerging markets and developing economies. Similarly, Fitch Solutions, a financial research company, has earmarked in the US in late 2023 while the IMF has forecast Eurozone growth to just 0.5% in 2023 against 3.1% in 2022.
Pakistan, India, Bangladesh, Cambodia, Vietnam, Thailand, and Myanmar, you name any country, production shuts downs have become a new normal all across the Asian textile spectrum.
