Turkish textile industry economic crisis

The Turkish textile and ready-to-wear sector is experiencing a significant crisis characterized by declining competitiveness and substantial employment losses. Between 2022 and June 2026, the industry reportedly lost 364,000 jobs and over 10,000 businesses.

The Turkish Clothing Manufacturers Association (TGSD) has identified a major disparity in profitability requirements compared to international competitors, noting that Turkish businesses require a 13.6% EBITDA to preserve equity, while competitors in different economic environments require only 3.6%. This disadvantage is compounded by rising costs; between 2022 and August 2026, wages increased 5.1 times and financing costs 4.1 times, outpacing the 2.6-fold rise in the exchange rate. This imbalance has resulted in an approximately 30% increase in dollar-based costs.

To mitigate these pressures, the industry has sought market diversification into North America, Russia, and the Middle East. The TGSD has proposed an integrated industrial policy involving short-term measures, such as increased foreign exchange conversion support, and long-term strategies to establish specialized production hubs.

In September 2026, Trade Minister Ömer Bolat reported that Turkey has secured a 3.6 percent share of the global textile and confection export market. He noted that textile and raw material exports reached $9.4 billion, while ready-to-wear and confection exports stood at $18.6 billion, totaling $31 billion for the sector. Bolat also highlighted broader economic trends, stating that Turkey has maintained continuous economic growth for 24 consecutive quarters and has risen to become the 16th largest economy in the world. He announced year-end export targets exceeding $282 billion in goods and $410 billion in total exports.