The effect of the financial crisis on the garments sector
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The crisis has completely cut off garment exporters from developing countries from access to credit, whether for working capital or investment capital. Export financing activities have also been paralysed. 84% of the garment exporters expect a decline in exports this year. Similar negative developments are anticipated for their export margins. Almost 60% expect to have to cut jobs this year, with 16% expecting a decline in employment of over 25%.
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