The textile manufacturing sector of Serbia is likely to grow at a CAGR (Compound Annual Growth Rate) of 3 per cent in the period 2015-2020, mentions a forecast report by Technavio, a technology research and advisory company, followed by a study conducted on the current textile manufacturing market of the country and its future prospects. The report further highlights key factors which will lead the way for the expected growth – favourable trade agreements with the EU and low subcontracting costs of textile manufacturing in the country.
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Besides this, Serbia’s location in the Balkan Peninsula at the crossroads of Europe and Asia gives it an edge from the perspective of trade. This has been a key factor in influencing the inflow of Foreign Direct Investment (FDI) into the country’s manufacturing sectors, including the textile manufacturing industry. Additionally, it puts the country in close proximity to leading fashion capitals, such as Italy and France, and enables the manufacturers to keep abreast of changing market trends and respond speedily, according to a Technavio analyst.
It may be mentioned here that Serbian textile industry, which is export-oriented and labour-intensive, is an integral part of the country’s economy, and provides it with huge employment opportunities. The Government has also created policies for the sector such as relaxation in monetary policies and structural reforms to further accelerate their GDP this year and boost the influx of foreign investment in the textile sector, which accounts for nearly 70 per cent of the country’s total export revenue.