European textile exports increasing—outside EU

The eurozone crisis and fiscal belt-tightening by European Union (EU) governments are decreasing demand for European textiles and clothing within the EU, according to Textile Outlook International (Issue No. 161), a report from Textiles Intelligence. The latest data show EU textiles and clothing exports to countries outside the European Union increased in value by 6.3 percent, while exports to EU countries fell by 2.3 percent. EU exporters looked to emerging markets for growth, with exports to China up in value by 33.3 percent, Colombia by 24.9 percent, Macau by 27.6 percent, Chile by 29.6 percent, South Africa by 30.6 percent, Brazil by 34.5 percent and Venezuela by 52.2 percent. EU exporters benefitted in 2012 from a 7.6 percent depreciation of the euro against the U.S. dollar. EU firms were able to choose between maintaining their dollar prices and increasing their margins or cutting their dollar prices without sacrificing margins. Further depreciation of the euro in 2014 might spur EU exporters to continue looking further afield for growth options.