Peruvian textile industry has been seriously affected by the international financial crisis

Eduardo Farage, chairman of the National Association of Peruvian Industries, said that due to the impact of the international financial crisis, world demand for textiles will begin to decline, which may impact Peruvian textile exports and adversely affect 1.2 million textile workers.
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Farage said that since 2008, Peruvian textile industry exports have grown to 1.6 billion US dollars. However, due to the financial crisis in the United States and its gradual spread to Europe, people’s purchasing power has decreased and they have begun to reduce consumption and are more inclined to spend money on food.
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Farage said that the financial crisis caused by the U.S. real estate subprime mortgage crisis did not just happen now, but started 8 or 9 months ago. People are very worried about whether the crisis can be solved, and they stop buying other consumer goods and instead Spending most of their income on food is a trend that will hit the world’s textile industry hard.
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Farage said that the Peruvian textile industry directly employs 380,000 textile workers, but there is also a large number of indirect laborers serving the textile industry. If this part of the indirect labor force is added, the number of people employed in the textile industry will reach 1.2 million; if there are an average of 2 children per family, the affected population will reach 4.5 million.