The Turkish textile and apparel sector, one of the country’s most vital industrial pillars and a major source of employment, is facing its most serious crisis in decades. According to the Turkish Clothing Manufacturers’ Association (TGSD), misguided economic policies since 2022 have caused a loss of $7 billion in production and 210,000 jobs in the ready-made garment industry.
Economic Pressures Threaten Industry Competitiveness
At the 18th Istanbul Ready-Made Clothing Conference, TGSD President Toygar Narbay warned that Turkey’s textile and apparel industry has lost its global competitiveness due to surging costs and restrictive monetary policies.
“Sharp increases in TL-based production costs, the high-interest and controlled-exchange-rate policy designed to fight inflation, have increased our costs by 26.5% in dollar terms,” Narbay said. “This led to a 22% drop in output, worth $7 billion, and a 28% decline in employment, equivalent to 210,000 workers.”
He emphasized that the sector acts as the “insurance of employment” for the Turkish economy, warning that neglecting it would mean sacrificing the country’s industrial future.
Industry Leaders Call for Urgent State Support
Narbay also revealed that for the first time in 35 years, Turkey’s share in the global apparel market has fallen below 3%. He urged the government to take swift action, saying that “state support is no longer a choice but an obligation.”
Citing data from the national accounts, Narbay pointed out that the share of goods and services exports in GDP, which stood at 27.2% in 2022, is projected to fall to 16.4% by 2028 — a sign that Turkey’s growth is shifting from production and exports to domestic demand, marking a trend of deindustrialization.
“We Cannot Afford to Lose This Sector”
Ahmet Öksüz, President of the Istanbul Textile and Raw Materials Exporters’ Association (İTHİB), stated that the combined output of Turkey’s textile and apparel industries remains around $78 billion, but the sector is shrinking under pressure from rising costs.
“This industry is strategically important for Turkey. We cannot afford to lose it,” Öksüz said. “We face serious challenges in labor, energy, and access to finance. We are scaling down, and we can no longer reach our previous production levels.”
Mustafa Paşahan, Vice President of İHKİB, added that the textile and apparel industry still accounts for 14% of total manufacturing employment, underscoring its indispensable role in the national economy.
A Call for a New Industrial Policy
Industry representatives unanimously agreed that Turkey needs an urgent revision of its industrial and financial policies to restore competitiveness, protect jobs, and sustain exports. Without coordinated support, they warned, the country risks losing one of its few globally recognized manufacturing strengths
