The Textile Sector in Numbers: An Unstoppable Decline

According to the monthly report by the Argentine Textile Industry Federation (FITA), the sector's production experienced a severe contraction in the first months of 2026. For foreign readers, it is important to note that Argentina has been undergoing a drastic economic adjustment, including a model of opening up to imports, which combined with a sharp drop in domestic consumption, is severely hitting the local value chain.

Installed Capacity at Critical Levels

During April, the sector operated with an installed capacity utilization (a metric indicating how much of the total production capacity is actually being used) of just 42.4%, ranking last in the overall industry alongside rubber and plastic products. The gap with the general average (59.9%) was 17.5 percentage points. Investment is also lagging: imports of textile machinery between January and May totaled USD 50.4 million, a 24% year-on-year plunge, with the exception of washing equipment which rose by 3%.

Foreign Trade: Exports as the Only Ray of Light

While imports of the entire textile chain fell 24% in volume in May (21,390 tons for USD 102 million), exports showed a surprising leap. In May, 15,724 tons were exported for USD 40 million, a 36% year-on-year increase in volume and 53% in value. This growth was mainly driven by yarns, which soared 400% in volume during the fifth month of the year.

Despite the challenges, this surprising boom in exports offers a glimmer of hope for the sector's recovery, showcasing the resilience and competitiveness of Argentine textiles in the global market.