Turkey: Apparel exports reduce export growth target by 15% amid slowdown in orders from US and European buyers
"Turkiye's garment exporters cut year-end targets due to recession", 26 August 2022
Turkiye’s exporters are revising downward year-end targets because of drop in new orders amid signs of global slowdown and inflation. According to reports, Turkish apparel industry is feeling heat of volatile Europe and has reduced export growth target by 15 per cent. Latest figures indicate that Turkish garment exports remained fluctuating in recent past.
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..
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.