Nepalese exports hard hit by US financial crisis

Business News

Nov 12, 2008, 4:19 GMT

Kathmandu - Nepal's exports of ready-made clothes have suffered considerably because of the financial crisis in the United States, officials said Wednesday. The United States is Nepal's main buyer for ready-made clothing, importing as much as 85 per cent of Nepal's garment exports. 'The export of ready-made clothing to the United States fell by 47 per cent until October 2008,' the Garment Industries Association said. 'The fall in exports was aggravated by financial crisis in the United States.' According to the association, Nepal exported ready-made clothing worth 12.3 million dollars since January, a fall of nearly 10 million dollars from the same period last year. 'We expect the exports to drop even more given the continuing financial crisis and growing unemployment in the US,' said Uday Raj Pandey, the association's president. 'The exports to the US have been falling for the past five years due to competition from African and Caribbean countries, and we do not expect much change over the coming months' Pandey said. Ready-made garments are among Nepal's biggest industries after the production of woollen carpets and tourism. However, growing labour problems as well as inability to compete with other nations, led to the closure of nearly 80 per cent of the factories. The sector employed nearly 750,000 people during the heights of success in 2002. However, falling exports has led to many people being laid off.

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Nepalese exports hard hit by US financial crisis

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