The Greek textile industry, one of the traditional sectors of the economy with significant contribution to exports and employment, is suffering from a

significant recession in the last three years, the industry said on Tuesday.

A report by Hellastat said consolidated sales of the industry reduced 16.3 percent in the textile sector and 18.6 percent in the clothing sector, compared with the same period in 2004.

Pre-tax, interest and amortization earnings were down by 20.7 percent and 62.6 percent, respectively, over the same period.

An increase in raw material prices (cotton), higher labor costs,compared with increased competition from third countries (India, China, Turkey) - countries with incomparable lower costs - led to a significant increase of imports in Greece with domestic and European textiles industries losing significant market shares.

Recession signs are highlighted by the fact that total revenues by the 642 larger textile companies for 2004 were 2.4 percent lower compared with 2003, the report said.

Source: Xinhua