Some German buyers have cancelled trips to Turkey after the rise in political tension between Ankara and Berlin, Seref Fayat, head of the Turkish Clothing Manufacturers Association, said on July 25, according to Reuters.
The reorientation and toughening of Germany's foreign policy towards Turkey has included stark warnings to business travellers and tourists to show extra caution when it comes to visiting the country, given the great number of arrests amid its longrunning state of emergency. German Finance Minister Wolfgang Schaeuble has even warned that Turkish President Recep Tayyip Erdogan is “jeopardising the centuries-old partnership” between Turkey and Germany with the lack of regard being shown for human rights under his crackdown.
"We may not be able to achieve our annual export projection for the year if the expected improvement doesn't take place with our biggest customer Germany," Fayat reportedly added.
Germany is the Turkish textile industry's largest export market, while the textile industry accrues the second largest share of Turkey's export revenues, trailing only the automotive industry.
In H1, Turkey's textile export value declined by 6% y/y to $8.2bn despite an 8% annual growth in overall export volume.
In 2016, Turkish textile exporters fell $1bn short of their target with an annual realisation of $16bn. The failure was blamed on the July 15 failed coup attempt that temporarily derailed the economy. The EU accounted for a 70% share in Turkish textile exports last year with Germany alone buying consignments worth $2.5bn.
Fayat expects the domestic textile market will grow around 10% y/y to TRY60bn (€14bn) in 2017.
Turkish footwear manufacturers are stepping up their investments in Uzbekistan’s leather and footwear industries, according to local reports. A $1mn investment in the manufacture of leather, ... more
Shipping companies are the latest to feel the effects of “the West’s very tight blockade against the Turkish banking system”, according to a report by Turkish publication Ekonomim. In ... more
White goods sales in Turkey moved up 22% y/y in January as anxious consumers rushed to stores to make “panic buys” ahead of possible government measures to curb credit card spending, according to ... more