Analysis on the Impact of COVID-19 on the Garment Industries in Developing Countries

Abstract

In many countries in the developing world, the garment industry plays a major role in economic growth. In the wake of COVID-19, most countries declared national lockdowns, causing disruptions in the global supply chains. Garment industries and workers were likely to be most affected by such government measures. This paper discusses the performance of garment industries in developing countries before and after COVID-19 outbreaks. This research examines the impact of COVID-19 in garment industries in two Asian countries: China, the world's largest apparel exporter, and Bangladesh, where apparel accounted for the majority of exports in that country. The research was conducted using data from the World Bank and the United Nations Conference on Trade and Development, and statistical data was analysed. The study concluded that China remained the world's largest producer of garment exports after the disease outbreak, mainly because of its expertise in the garment industry and the shift from apparel to personal protective equipment (PPE). However, international retailers from global north cancelled Bangladesh's export apparel orders, resulting in a huge decline in the garment industry. As a result, people's wellbeing and standard of living decreased with the impact of COVID-19.