| 

Impact of inflation on Turkiye's apparel manufacturing and exports

Turkiye&#**;s export competitiveness has significantly declined, particularly in labour-intensive sectors, due to high inflation and a depreciated Turkish lira. Soaring inflation has raised production costs, while the lira&#**;s weakness has made Turkish goods more expensive internationally, challenging exporters to maintain market share and profitability. The sharp rise in inflation has posed significant challenges for Turkish businesses, including apparel exporters, by inflating production costs and complicating pricing strategies in international markets.

Exhibit *: Inflation, GDP deflator (annual %) of Turkiye