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Garment manufacturing sector in state of paralysis
May '09
Albania is a country in South East Europe and has around 400 garment manufacturing companies mainly supplying low cost garments to Germany, Greece and Italy. But the slowdown emanating from global recessionary trends has severely hit the industry.

More than 10,000 workers from the 100,000 employee strong apparel manufacturing sector have lost their jobs in the last few months due to lack of orders to process garments as more than half the companies have partially or fully ceased operations.

The government on its part has not done anything till date to alleviate the troubles of the crisis ridden garment sector and the industry is expecting more lay-offs in the near future if the government does not announce any incentive package.

Garment and footwear exports account for 60 percent of overall shipments from Albania and despite being so important for the economy they grew by just 4.5 percent y-o-y in 2008 and have fallen in double digits in the first two months of 2009.

Fibre2fashion News Desk - India

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