Ecuador’s textile industry experienced a sharp decline in domestic revenue during 2020, with turnover falling 36% from $1.38 billion in 2019 to $885 million, according to data released by the country’s Internal Revenue Service (SRI).
The significant drop reflects the severe impact of the COVID-19 pandemic on Ecuador’s textile and manufacturing sectors.
Textile Industry Lost Nearly $500 Million
According to Javier Díaz, President of the Ecuadorian Association of Textile Industries (AITE), the sector lost approximately $500 million in revenue during 2020.
The industry’s downturn also affected employment, with jobs in the textile sector declining by 29%, while employment across the broader manufacturing industry fell by 20%.
Textile Exports Remained Stable
Despite the sharp contraction in domestic sales, Ecuador’s textile exports showed resilience.
Data from the Central Bank of Ecuador (BCE) indicates that textile export volumes increased from 26,000 tonnes in 2019 to 28,400 tonnes in 2020.
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Export revenue also recorded a modest increase, rising from $103.8 million to $104.4 million, representing a 9% increase in export volume and a 1% increase in export value.
Demand for Abacá Fiber and Face Masks Supported Exports
According to AITE, the slight improvement in exports was mainly driven by higher international demand for abacá fiber, a natural fiber widely used in textile and paper manufacturing, as well as specialty products such as protective face masks during the pandemic.
Although export performance provided some support, it was not enough to offset the substantial losses experienced in Ecuador’s domestic textile market.
