According to estimates from the Turkish Statistical Institute, Turkey’s garment exports climbed 25% year over year in the first three quarters of 2021. Knitted and crocheted clothing and accessories exports grew by 35%; non-knitted apparel and accessories exports increased by 14.7%; carpets, mats, matting, and tapestries exports increased by 34%; and worn clothing, other textile items, and rags exports increased by 19.7%. Turkey’s imports of cotton, cotton yarn, and cotton textiles increased by 34.2 percent.
Turkey is also experiencing severe inflation. Food, services, housing, and transportation expenses all contribute to the almost 20% annual inflation rate, leaving customers with little money for apparel. As a result, consumers simply buy the bare minimum of textiles for their everyday necessities. Manufacturing will be impacted by the drop in domestic demand, as textile and garment industries reduce production. High inflation is accompanied with a falling currency. Since the beginning of 2021, Turkey’s currency, the lira, has lost about 25% of its value. In the meanwhile, in addition to the high cost of fuel and other imports, the government boosted the price of natural gas given to the sector by 48% this month, citing a worldwide price jump as a reason for the increase.
