Exports are not as 'ready' as they used to be: Egypt's rise, Türkiye's loss

The ready-made garment sector, which has been among the top three exporters in Türkiye for years, is sounding the alarm with its recent sharp decline. Having fallen behind electrical and electronics and other sectors in the second quarter of 2025, ready-made garments are experiencing a near-collapse, falling to fourth place in May and fifth in June. Data from the Turkish Exporters' Assembly (TİM) revealed that the sector's share of total exports has fallen to an all-time low of 6.2 percent.

The recent shift of Turkish apparel companies' production centers to Egypt has played a key role in this decline. Due to rising energy and labor costs, many brands are choosing Egypt, which offers lower costs and customs clearance advantages. However, this situation is impacting both Türkiye's exports and domestic production.

In the first five months of 2024, Türkiye's ready-made clothing imports from Egypt reached a record $170 million. Egypt surpassed Bangladesh and Vietnam, becoming Türkiye's second-largest ready-made clothing supplier after China. Industry representatives warn, "Investments in Egypt are suppressing domestic production and employment."

Europe stagnates, orders shift to Asia

There are several main reasons behind the decline in the sector:

Loss of competitive costs: Turkey's unit production costs are 40-50 percent higher than its competitors.

Declining demand in Europe: The economic recession is reducing demand for Turkish ready-made clothing.

Exchange rate-inflation imbalance: The depreciation of the Turkish Lira lags behind inflation, eroding the profitability of exporters.

These factors are leading to a shift in orders to countries like Bangladesh, Vietnam, and Egypt. The domestic market is also experiencing an import boom: In the first five months of 2024, ready-made clothing imports increased by 20.9 percent compared to the previous year, reaching $1.5 billion.

Sharp decline in exports: 21 percent decline in June

In the first half of 2025, the sector's exports decreased by 6.5 percent to $8.1 billion. The decline in June was even steeper: 21 percent compared to the previous month and 6.9 percent compared to the same month in 2024, reaching $1.2 billion.

Urgent action is necessary

Experts recommend that the Turkish ready-made clothing sector regain its competitiveness

✔ by reducing taxes and energy costs ,

✔ increasing technology investments , and

✔ expanding government support to expand into new markets .

Otherwise, it seems inevitable that this decline in the sector's export league will continue.