Despite a challenging global economic environment, the Aegean Exporters’ Associations (EIB) has reaffirmed its commitment to strengthening Türkiye’s production capacity and export performance in 2026, sending a clear message to the industry: it is time to produce and export, not to wait.
During the recent Sectoral Evaluation Meeting, EIB officials highlighted that although export figures for 2025 remained close to the previous year’s levels—reaching approximately $18.5 billion—the realities on the ground present a far more complex picture. Rising production costs, erosion of profitability, and ongoing difficulties in accessing finance were identified as key pressures facing exporters.
Jak Eskinazi, Coordinator President of EIB, described 2025 as a year marked by moderate but fragile growth, shaped by high geopolitical and financial risks. He noted that while a severe recession has been avoided, economic growth continues to lag behind historical averages, and global uncertainty remains a dominant factor influencing trade dynamics.
A gradual decline in inflation across major economies has provided partial support for demand and investment. However, borrowing costs remain elevated compared to pre-pandemic levels, limiting financial flexibility for exporters. At the same time, increasing protectionism and trade barriers continue to suppress global trade volumes, with policy uncertainty expected to persist into 2025 and beyond.
Call for Structural Transformation in Manufacturing
Eskinazi also drew attention to Türkiye’s structural challenges, particularly its high dependency on imported intermediate goods. He emphasized that in many manufacturing sectors, up to 60–70% of inputs are imported, which reduces value-added output and increases vulnerability to currency fluctuations.
Read more: Türkiye’s Textile and Apparel Sector Faces Growing Pressure
According to him, this imbalance not only weakens economic resilience but also leads to a long-term transfer of value abroad. While Türkiye’s industrial production capacity and diversity have grown, the domestic supply chain has not strengthened at the same pace, creating a critical gap that must be addressed.
Garment Exports Decline as Cost Pressures Intensify
In the apparel sector, the outlook remains particularly challenging. Burak Sertbaş, President of the Aegean Apparel Exporters’ Association (EHKIB), reported that ready-to-wear exports declined by 6% in 2025, reaching $16.7 billion.
Within the Aegean region, exports fell by 8%, totaling approximately $1.268 billion. Key export markets continue to include Spain, Germany, the Netherlands, the United Kingdom, and Italy. However, rising production costs and financial constraints have significantly impacted profitability across the sector.
Sertbaş also highlighted a notable shift among Turkish manufacturers, with some companies relocating production to countries such as Egypt, where energy and labor costs are comparatively lower. He warned that this trend could pose long-term risks to domestic employment and industrial capacity.
A Year of Resilience, Not Expansion
Industry leaders agree that 2025 has not been a year of growth, but rather one of resilience, adaptation, and survival. Many exporters have focused on maintaining operations, managing risks, and navigating a volatile global landscape rather than pursuing aggressive expansion.
At the same time, the importance of design and value-added production has become more evident. While Türkiye’s average export unit price stands at approximately $1.6, the apparel sector achieves significantly higher levels, with an average of $16.21 and reaching up to $21.19 in the Aegean region—highlighting the sector’s potential for higher value creation.
Looking Ahead to 2026
As the industry moves into 2026, the message from EIB is clear: strengthening domestic production, reducing import dependency, and investing in efficiency and innovation will be critical to long-term competitiveness.
Rather than waiting for global conditions to stabilize, Turkish exporters are encouraged to take proactive steps to adapt, invest, and reposition themselves in an increasingly complex and competitive global market.
