Sri Lanka's apparel export sector faced a severe test during the first half of fiscal year 2026. Based on recent data, the country's total garment exports contracted by 5.8 percent year-on-year to $2.26 billion. This decline was primarily driven by massive demand fluctuations and retail inventory adjustments in major Western markets, namely the United States and the European Union. Nevertheless, behind this contraction, this global trade dynamic reveals an intriguing structural resilience map, forcing industry players to revise their long-term strategies.
South Korea recorded a positive growth trajectory in its readymade apparel import sector during the first half of 2026, signaling strong domestic market momentum amidst global economic challenges. According to the latest data from Trademap, the country's total apparel import value increased slightly by 2.27 per cent to reach $5.658 billion between January and June 2026, compared to $5.531 billion during the same period in 2025. Notably, import shipments witnessed higher growth rates as the reporting period progressed toward mid-year.
Cambodia's trade-facing manufacturing base is entering a tougher 2026, with resilient garment exports remaining a key support while higher energy costs, border-related disruptions, and financial-sector confidence pressures test the economy, according to the ASEAN+3 Macroeconomic Research Office (AMRO). Manufacturing served as the main growth engine in 2025 for apparel exporters, importers, and sourcing teams, supported by resilient garment exports and sustained foreign direct investment (FDI) inflows despite the introduction of US reciprocal tariffs. AMRO noted in its 2026 Annual Consultation Report (ACR) that Cambodia's economy expanded by 5.3 percent in 2025, outperforming earlier expectations despite multiple shocks, but projected growth to moderate to 4.2 percent in 2026 as higher energy prices and continued border-related disruptions weigh on activity.
Indonesia’s Textile and Textile Product (TPT) sector has recently posted a promising statistical figure with a 6.36% year-on-year growth rate, outperforming national economic growth and the general non-oil and gas manufacturing sector. Yet, beneath these robust macro-level figures, the reality on the ground tells a different story: widespread layoffs in labor-intensive centers and a structural collapse in domestic supply chains caused by predatory import dumping. This article provides a comprehensive analysis of this economic paradox.
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