Turkiye's garment exporters cut year-end targets due to recession

Recently, an office bearer of TOBB (Union of Chambers and Commodity Exchanges of Turkey) Garment and Apparel Council said that the year-end export growth target for the apparel industry has been reduced from 15 per cent to barely any growth at all. He said that there is a slowdown in new orders from the US and European markets in recent months, and hence exports are anticipated to remain flat or only slightly up from last year.

The latest data of Fibre2Fashion’s market insight tool TexPro also indicates the same trend. Turkish garment exports increased to $1.798 billion in June 2022 but had registered a steep fall in May 2022 at $1.235 billion. Exports were $1.869 billion in April, $1.835 billion in March, $1.655 billion in February and $1.413 billion in January 2022. Turkish garment exports declined in last three quarterly consecutively. The exports dropped from $4.944 billion of October-December 2021 to $4.905 billion in January-March 2022. It further decreased $4.903 billion in latest April-June quarter.

Turkiye is heavily dependent on European market for garment exports. As per TexPro, Turkiye had exported garments worth $13.702 billion to Europe out of its total export of $17.570 billion in 2021. It means the country had exported 77.98 per cent of its garment to a single region. Currently, Europe is facing a series of challenges including supply disruption of crude oil and other commodities which fuelled inflation not only in Europe but also in other regions of the world. Recession knocked the door of global economy when the US Fed and other central banks began to hike policy rate to contain inflation. 

Fibre2Fashion News Desk (KUL)