Turkey consolidates its role in the
European fashion sourcing
Turkey consolidates its role in the European fashion sourcing
while its economy weakens. The county, which has entered a
technical recession, showed an increase in exports of textile
and fashion goods to Europe, relying mainly on the devaluation
of the local currency.
Turkey’s Gross Domestic Product (GDP) registered a 2.4% fall
in the fourth quarter of 2018 compared to the previous quarter,
entering technical recession for the first time since 2009,
according to data published by the Turkish Statistical
Institute (Turkstat). In Inter-on-year terms, the country’s GDP
recorded a 3% drop.
Despite the setbacks of the Turkish economy in the last two
quarters of the year, 2018 as a whole had a positive
performance, with an annual increase of 2.6% compared to 2017.
However, the rise was well below that registered one year ago,
when it stood at 7.4%.
The Turkish Minister of Finance and Treasury, Berat Albayrak,
stressed that this is temporary nature of the economic slowdown
and explained that the country has started a moderate recovery
driven by exports and tourism income.
It is important to note that part of this recovery is based
on the devaluation of the local currency executed last year on
several occasions by the Turkish Government in order to gain
competitiveness in foreign markets.
The textile sector, highly sensitive to production costs,
took advantage of such devaluation to increase exports.
In 2018, the European Union imports increased by 2%, which
establishes itself as the third largest hub in the European
sector, according to the latest data revealed by ICEX.
Turkey was the only proximity sourcing destination of the
European Union which increased its sales to the region last
year, whereas Italy fell by 2.2%, in the Czech Republic had a
drop by 5.6% in and Portugal plummeted by 10.2%.