Turkish exports of clothing will plunge nearly 80 per cent as global brands cancel billions of dollars of orders. Turkish firms are in talks with brands like H&M, Marks & Spencer and Primark about payments and orders placed, the Istanbul Apparel Exporters ‘Association says. Hundreds of billions of dollars in clothes await shipment in the country.
Industry exports shrank by 27 per cent a year in March, but by April or May the decline could reach 70-80 per cent. Turkish apparel firms predicted $19 billion in exports this year, with about 70 per cent destined for the European Union and Britain. Manufacturers, however, are now operating at around 30% of capacity compared to 85% three months ago. Many companies have stopped production, while others work at minimal rates. There is no indication of the situation changing for at least the next three months.
To tide over this, the association asked the government to provide financial assistance for reduced working hours from the beginning of April for at least five months. Also, it will ensure that repayments of social security, taxes and bank loans are postponed for one year.