After dramatic job cuts during the 1990s, employment in the textile and clothing industry reached a low point in 2002. Since then, however, it appears to have recovered and by 2005 it had reached 1.5 mn. The clothing sector is dominated by small enterprises, which produce an average of less than 20,000 pieces per month each.
Despite continuing problems related to the country’s debt, global confidence in Brazil’s economy is growing. Total foreign direct investment in Brazil jumped from US$10.1 bn in 2003 to US$18.2 bn in 2004. Investment in the industry itself reached US$17.4 bn between 1990 and 2005. For the period between 2006 and 2008, investment is forecast to reach US$4.7 bn—which does not include a forthcoming project for developing polyester fibre production.
Unlike highly industrialised countries which have already optimised their textile and clothing industries, Brazil can still do much to advance and strengthen its position. A lot will depend, however, on government policies.
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