Textile Sector Records 5% Growth Due to Medical Masks and Military Clothing

In Armenia, from January to December 2020, textile products worth 32.1 billion AMD (including knitwear, clothing, and leather goods) were produced, marking a 5% increase (30.5 billion AMD) compared to the same period last year. This was noted by Suren Paryan, head of the economic research office of the Armenian Revolutionary Federation Bureau.

He specifically added, "The textile sector occupies only 1.55% of total industry. For comparison, the food industry accounts for approximately 26.3% (545.0 billion AMD). In the context of the new coronavirus pandemic and military actions, the growth in textile production may be attributed to the mass production of masks and medical supplies, as well as military clothing and other military-related items, primarily by small and medium enterprises engaged in economic activities in this sector.

The growth of the textile sector, driven purely by domestic consumption, is also substantiated by the fact that clothing exports from Armenia decreased by 37 million USD or 22.3% in 2020, totaling 128.6 million USD. This means that the growth in textile production has primarily been consumed within Armenia. Additionally, we have a substantial amount of re-exports from Armenia.

Currently, there are two types of producers active in the textile sector: those providing sewing services to foreign companies (such as from Italy and Germany) and those producing their own products. Companies that produce their own goods operate in factories that have been maintained since Soviet times as well as newly established workshops. The latter mostly import raw materials and model the products themselves.

It is also noteworthy that the textile industry is a labor-intensive sector, creating jobs for low-skilled and relatively inexpensive labor. Considering that primarily women work in this sector, we can conclude that the development of the textile industry can serve as a basis for addressing women's employment and related social-economic issues.