Slovakia textiles & clothing report Q4 2009

Slovakia is a small textile and clothing producer, with a long tradition in the industry during the time of the Soviet bloc, and now the potential of a specialist, market-oriented role to play within the European Union. BMI ranks it as number 65 in the world in terms of textile and clothing manufacturing value added. In nominal terms we estimate that to have been worth US$1.18bn in 2008

At present, the market is very difficult for Slovakian textile and apparel producers, with a slump in orders forcing production and employment cutbacks. We see little let-up until 2011: the companies that survive will need to position themselves to meet fashion-led, quick turnaround, small to medium-sized orders from EU-based buyers. Overall Slovakia textile and apparel value added will fall by 15.4% in 2009, and again by 4.1% in 2010, reflecting very difficult international economic conditions. We see a moderate recovery setting in from 2011, with growth of 2.7%. The industry's trade performance will also reflect the especially difficult international economic situation, with T&A exports down 18.6% this year to US$1.527mn, and imports shrinking 17.8% to US$1.703bn. As a result, there will be a T&A trade deficit of US$176mn.