No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsLatin AmericaThe Growing Importance of Used Clothes in Central America

The Growing Importance of Used Clothes in Central America

The used clothing industry is gaining strength in Central America due to the combination of the needs of a majority of the population with scarce resources and the global trends for recycling and reuse of garments, according to a report presented this Friday in Costa Rica.

More than four million tons of second-hand clothing are traded every year and Central America has become a market for textiles from the United States, Canada, the European Union, China and South Korea, according to the report “Reuse before throwing away” by the U.S. consulting firm Garson & Shaw.

The report, released in San Jose, analyzes the situation in Guatemala, El Salvador, Honduras and Nicaragua and estimates that between 2011 and 2021 the used clothing industry in these countries grew by $274 million.

“Our report estimates that in the early 2040s the used clothing sector will have more than three million jobs in the four countries studied in Central America (…) and will generate close to $200 million in profits through taxes.

Growth

Nicaragua is the nation in which this industry has grown the most and the fastest. “About 80% of Nicaragua’s population purchases used clothing or footwear,” the report noted. The industry grew by 280% in the last decade.

In 2021, some 52,500 tons of used clothing (1.9% of the world’s total) were imported into Nicaragua, which ranked 19th among second-hand textile consuming countries. In that year alone, the benefit through taxes for the state was $23.7 million and the industry is estimated to account for 1% of the national GDP. Since 2017, imports grew by 7%.

In Guatemala there is “a high need for cheap clothing and demand for used textiles remains strong,” the report noted.

In 2021 the country imported 130,000 of used clothing (3.4% of the world total) and ranked as the ninth largest importer of these products in the world. In that year the benefit thanks to taxes in this industry amounted to 40.2 million dollars. Since 2017, imports have grown 10%.

Honduras acquired in 2021 66,000 tons of second-hand clothing (2.7% of international trade) and meant being in 17th place among the largest importers in the world. In that year, the tax benefits delivered to the State by the used clothing industry amounted to US$34.1 million, representing 1.6% of Honduras’ GDP.

In El Salvador, some 35,000 tons of used clothing were imported in 2021 (1.9% of the world total) and the country ranked 23rd in terms of imports in the world. It was $16 million in taxes collected by the government through the second-hand textile industry, which accounts for 1.4% of the national GDP.

“The used clothing trade is creating jobs for hundreds of thousands of citizens while generating significant tax revenues for governments, something that is expected to continue long into the future,” the Garson & Shaw report noted.

Trending Now

Costa Rica and U.S. Strengthen Border Scans and Biometric Cooperation

U.S. Secretary of Homeland Security Kristi Noem met Wednesday with Honduran President Xiomara Castro to discuss security and migration, following her offer in Costa...

El Salvador Slams Paris Fashion Show Inspired by Cecot Mega-Prison Inmates

The president of El Salvador, Nayib Bukele, joked on Saturday that he could send inmates from his mega-prison to France, after they were represented...

Costa Rica Pushes USA to the Brink but Falls in Penalty Heartbreak

If you just caught the end of the USA vs. Costa Rica Gold Cup quarterfinal, you probably feel like you need another cup of...

Costa Rica’s Pride 2025 Closing Event Bans Minors, Sparks Outrage

Costa Rica’s Pride 2025 closing event, set for June 29 at San José’s Plaza de la Democracia, was thrown into controversy when the government...

Prisma Dental in Costa Rica Keeps Customers Happy and Smiling

I am 81 years old and have had teeth removed, bridges, and cavities fixed several times to sustain my ability to eat and function....

Why Costa Rica Feels Like a Safe Haven for This Longtime Expat

If someone asked me to sum up why I live in Costa Rica in 5 words or less, my answer could well be: “It...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica