Türkiye’s Minister of Trade, Ömer Bolat, stated that as interest rates decrease, investment appetite is increasing. Speaking at the Texhibition Istanbul Yarn, Fabric, and Textile Accessories Fair, he predicted that financing costs will decline further by summer, making it easier for businesses to meet their investment and operational needs.
The Texhibition Istanbul Fair, organized by the Istanbul Textile and Raw Materials Exporters’ Association (ITHIB) at the Istanbul Expo Center (IFM), opened its doors to visitors.
“Turkish Textile Industry Has Become a Global Brand”
During the opening ceremony, Minister Bolat emphasized the remarkable growth of Türkiye’s textile industry, stating:
“The Turkish textile, fabric, yarn, apparel, carpet, and home textile sectors have become globally recognized brands. These products are highly sought after worldwide, and their strong competitive edge fills us with pride. Today, Texhibition hosts over 25,000 visitors from 125 countries and more than 500 exhibitors, marking a significant success.”
He also noted that recent trade fairs have been highly productive, leading to strong sales, new business connections, and large orders.
Türkiye Holds a 4% Share in Global Textile and Apparel Trade
Minister Bolat highlighted the significance of the textile and apparel industry, which accounts for 4% of global exports, amounting to $875 billion in trade volume. He noted that Türkiye holds a 4% market share globally, ranking 6th in the world and 3rd among suppliers to the European Union.
He stated that the industry’s total exports exceeded $32.1 billion last year, and when including carpets, home textiles, leather products, and accessories, the figure rose to around $36 billion.
For the first two months of 2024, textile exports surpassed $1.57 billion, maintaining last year’s level. However, apparel exports saw a slight 5% decline, which Bolat attributed to seasonal and cyclical factors.
The slowdown in demand within the EU and the rise in economic stagnation have affected the textile industry. However, Bolat stressed the importance of remaining optimistic, stating:
“Only two countries in the world have integrated production and export capabilities across the entire textile value chain, from cotton ginning to yarn, fabric, apparel, accessories, leather, carpets, and home textiles—Türkiye and China. This is a fact we should never forget.”
The industry employs 1.1 million people, with nearly 70,000 businesses operating in the sector, accounting for 7% of Türkiye’s total workforce.
Texhibition Istanbul to Be Recognized as a Prestigious Global Fair
Bolat also mentioned ongoing efforts to have Texhibition Istanbul classified as a prestigious international fair, stating that a proposal has been submitted to the Presidency’s Strategy and Budget Office, and an official announcement will be made once approval is received.
“Investment Appetite is Increasing”
Discussing the broader economy, Minister Bolat noted that investment appetite is rising as interest rates decline. He pointed out that inflation had fallen to 39%, the lowest in 20 months, and that the Central Bank’s Monetary Policy Committee would meet on March 6 to make further decisions.
“We expect a positive outcome that will lead to lower financing costs for export rediscount loans and loans for small businesses. By summer, we will see even lower financing costs, which will greatly support investment and operational needs.”
Financing Costs Expected to Drop Further After March 6
Minister Bolat emphasized the government’s support for exporters, increasing financial aid from TRY 24.7 billion in 2024 to TRY 33 billion in 2025. He also allocated TRY 1 billion in export pre-financing credit for labor-intensive sectors such as textiles, apparel, leather, footwear, and furniture.
Interest rates on financing had already dropped from 36% to 28.83%, and further reductions are expected after the March 6 Central Bank meeting.
Bolat also highlighted the importance of aligning with the EU’s Green Deal to maintain and grow exports to Europe, and he outlined ongoing support from Türkiye’s Export Credit Bank (Eximbank), KOSGEB, and Export Development Inc. (IGE).
“Now is the Time for Business and Trade”
Concluding his speech, Minister Bolat emphasized that Türkiye is now one of the world’s leading trade fair destinations, and he expressed his best wishes for Texhibition Istanbul to be a successful and productive event.
Following the speech, Minister Bolat and his delegation officially inaugurated the fair, toured the exhibition areas, and engaged with participants.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök