Posted on 17 December 2009
Turkey’s textile industry has received record orders, in one of the clearest signs yet that the global economic recovery is underway. Yes, you are forgiven for thinking, what? And yes, you are right, record orders in the Turkish textile industry is the kind of headline you can easily skip right over, but the fact that it is a headline should tell you not to.
The orders received by the textile industry rose 16.6 percent in October compared to a month earlier. The increase was 8.2 percent on the annual basis, according to official figures. This is significant in itself, but when added to the fact that last October was a record month for the industry, which means this is a new record it is nothing short of incredible.
Turkey has well and truly earned its place as one of the most promising emerging markets in the world, with two major financial bodies acknowledging that it will be among the fastest growing economies in the world next year (Fitch and JP Morgan Chase & Co).
In such emerging markets, traditionally household industries like textiles can be among the most important sectors, and very important to the rapid growth these economies see, not to mention the employment they provide in what would otherwise be the poorest parts of society.
Turkey is one example, and Cambodia is another prominent example. Both saw rapid growth in their textiles sector during the boom years, and both have suffered extremely badly from the massive drop in demand within those sectors in the last year – 18 months.
Again, none of that puts Turkey’s textile industry as vital to global economic growth, and it isn’t, but a large part of the demand for Turkish textiles is international, and the fact that demand has risen at a record rate ties in very well with the reports of the international economic recovery.