Textile manufacturing market in Serbia is expected to grow at a CAGR of 3 per cent during 2016-2020, according to a latest Technavio forecast report. The study covers the present scenario and growth prospects of the textile manufacturing market in Serbia for 2016-2020 period. The report also outlines the challenges faced by the manufacturers and the market at large, as well as the key trends emerging in the market.

Textile manufacturing is an integral part of the Serbian economy. It is export oriented and labour intensive, providing the country with huge employment opportunities and, therefore, is an industry that is highly favored by the government. The GDP is expected to accelerate in 2016 following a number of government policies such as relaxation in monetary policies and structural reforms, which are expected to improve the business environment and lead to the inflow of foreign investments. Manufacturers in the market are expected to capitalize the market and boost production. They are also expected to focus on exports, particularly to the EU, the country's most important trading partner.

Technavio consumer and retail analysts highlight three factors - Strategic location, Favorable trade agreements with EU and Low subcontracting costs that are contributing to the growth of the textile manufacturing market in Serbia.