Special Report: Global Financial Crisis    

    RIO DE JANEIRO, Oct. 28 (Xinhua) -- Brazil's textile and clothing industries will benefit from the ongoing worldwide financial crisis, expecting growth both during the Christmas season and next year, said the Brazilian Textile and Apparel Industry Association (ABIT) on Tuesday.

    According to ABIT, investments in the sectors are expected to reach 1 billion reais (454 million U.S. dollars) in 2009, while the year 2008 is expected to see a deficit of 1.6 billion dollars.

    Growth in both sectors in 2008 were slim: the textile industry grew by only 0.3 percent in the period, and the clothing industry 4.9 percent, while the average growth of all Brazilian industries was 6 percent in the first eight months of the year.

    Losses in the two sectors were attributed to an increase in imports, which was coupled by a devaluation of the Brazilian real against the U.S. dollar.

    ABIT counselor Rafael Cervoni said that apart from the devaluation of the Brazilian currency, whose value shrank by 30 percent due to the global financial crisis, credit restrictions will also make import more difficult, benefiting local industries.

    Ronald Masijah, President of Sindi Vestuario, the sectors' representative entity, expected the fall in imports to lead to an 8-percent rise in the local industries' sales during Christmas.

    The crisis will also result in a decrease in the domestic consumption of durable goods, such as cars, which might boost other sectors such as textile and clothing, added Masijah.