Turkish textiles are in a downturn
The Turkish textile industry faces significant challenges due to high inflation, refugee issues, and declining export levels, signaling a critical crisis.
Turkey, once known as the 'European China' for its robust textile sector, is now experiencing its worst crisis in three decades, largely influenced by severe inflation and the departure of Syrian refugees. By 2025, Turkish textile exports fell to less than 3% of the global clothing trade, decreasing to a little over 14 billion euros, which is almost a quarter less than in 2022.
Industry leader Abdullah Kigili has raised alarm bells regarding the future of the textile sector, asserting that the government has neglected the industry's needs. The divergence between industry interests and government economic policies has exacerbated the situation, compromising the industry’s ability to recover from ongoing challenges. Fluctuating inflation rates, which have spanned between 30% and 64% over the last four years, further complicate the landscape for textile businesses.
As stakeholders in the industry grapple with these issues, the implications for a sector that has historically played a vital role in Turkey's economy could be severe. If the trends of declining exports and misaligned governmental support continue, the Turkish textile sector may not only struggle to regain its former position but could also lose significant global market share, impacting employment and economic stability in the region.