Direct textiles, such as clothing and footwear, are among the sectors where the sector is expected to see the biggest growth in the next 10 years, according to the World Bank.
It said that the sector was forecast to grow by 15.7 percent over the next ten years, from €4.6 billion to €18.6bn, as a result of an increased demand for textiles.
However, the growth rate of direct textiles has been slowing due to the decline in the textile production industry.
The industry has also been hit by the global financial crisis, which saw textile production fall by more than a third, with the textile sector contributing a large part of the losses.
The downturn also led to the closure of textile plants in some parts of the world.
“We see direct textile production as a promising sector that will be the subject of a very strong economic growth in Europe in the coming decade,” said the World Development Report for 2020-2021, published by the World Economic Forum.
“The sector will also be a key driver of economic growth for the global economy in the years to come.”
The World Bank said that textile manufacturing, especially in developing countries, could help offset some of the negative externalities associated with the global textile crisis.
However the report said that direct textile manufacturing in developing nations is likely to remain a major source of indirect employment in the future.
The report also said that more direct textile products will become available in the global market, with more countries in Europe and Asia to follow suit.