According to the report, although the demand for the textile products recovered on the global context in the 2nd and 3rd quarters of 2021, the figures remained well below pre-pandemic levels in both major producing countries and in end markets.
Allianz Trade, the world leader in trade-related receivables insurance, has published its Industry Report for 2022. In the textile sector portion of the report, it was stated that despite the recovery in demand which was in its inception, pre-pandemic levels could not be reached in both major producing countries and in end markets.
Russia-Ukraine War Made an Impact
While emphasizing that the supply chain problems that emerged after the pandemic were amongst the reasons for the textile industry's inability to recover, it was emphasized in the report that in the expenses of companies in the coming period, the possible rises in "the fast-growing second-hand market's participation in intense competition", "the shift of production from China to alternative countries such as Vietnam, Bangladesh and Indonesia", and "new sustainability standards" may be a possibility. The report also emphasized that the disruption of the supply chain in the countries after the Russia-Ukraine War and the suspension or slowdown of the activities of companies which have partnerships, affiliates, branches and stores in these countries will continue to play a major part in material and moral losses. Other reasons for the industry to fall behind the pre-pandemic levels which were listed as the Russia's occupation of Ukraine and the following energy crisis, volatility in commodity prices, negativities in the global supply chain and logistics crisis.
Turkey's Eyes turn on the European Economy
According to the report, the eyes of the Turkish textile industry will be on the economic developments in the region in 2023, since 70 percent of ready-made clothing exports are to European Union (EU) countries. In the second half of 2022, the effects of the low-impacting recession expected in Europe, which is the largest market, will be decisive for the year 2023 for the Turkish textile industry, whose orders have decreased due to gas shortages in EU countries, rising interest rates and recession concerns.
