Resilience is the Key
The business realm in Turkey is going through some tough times since the pandemic. The Russia-Ukraine conflict and the Israel-Palestine conflict have contributed to this. According to data from the Union of Chambers and Commodity Exchanges of Turkey (TOBB), 15,000 companies have closed so far in 2024, representing a 28 percent increase from last year. The earthquake of February 2023 has been one of the most significant contributing factors as well. The earthquake devastated regions heavily dependent on textile manufacturing, affecting Turkey — the world’s fifth-largest textile exporter. The garments and textile sector has seen more closures compared to other industries. Turkey is home to 65,000 textile and apparel companies. Several companies have already applied to the courts for protection to avoid bankruptcy.
Turkey is showing its resilience. However, the concerns about conditions in the supply chain linger. “The earthquake posed a severe challenge, impacting the country and its industries profoundly. It was recognized as one of the most catastrophic events in recent history, and it tested the resilience and operational capacity of the textile sector,” says Ahmet Öksüz, chairman of the Istanbul Textile and Raw Materials Exporters Association (ITHIB).
However, something that gives Turkey a powerful geographic advantage over Asian sourcing destinations is its proximity to Europe. Industry representatives believe the sector will bounce back, particularly toward the end of 2024. According to the World Bank, Turkey's GDP grew by 4.5 percent in 2023, and the growth rate is expected to decrease to 3 percent in 2024. It will take structural reforms and robust fiscal measures to address these challenges. This yearly special issue is all about resilient business leaders in Turkey.
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