Powerful earthquakes in Türkiye are expected to cause losses to the national economy of more than 84 billion dollars or about 10% of GDP. Bloomberg agency reports about it.
According to a forecast of the Turkish Confederation of Entrepreneurship and Business (Turkonfed), the earthquakes caused about $70.8 billion in damages to homes and another $10.4 billion in losses to national income.
Turkonfed said labor losses would cost the Turkish economy $2.9 billion. The earthquakes severely affected 10 provinces and 13.5 million people in the southeast of the country as well as in neighbouring Syria.
Turkonfed’s calculations were based on the 1999 earthquakes near Istanbul that killed about 18,000 people. Losses from the latest earthquake are already far higher than those from the 1999 earthquake, and tens of thousands of people are missing.
Damage to Türkiye’s infrastructure, including roads and electricity grids, as well as hospitals and schools, could lead to a budget deficit of more than 5.4% of GDP this year, compared with an official forecast of 3.5%.
Initial calculations by Bloomberg Economics showed that disaster-related spending, including reconstruction efforts, could amount to about 5.5% of GDP.
Turkish President Recep Tayyip Erdogan said his government would complete housing within a year and initially allocated around 100 billion liras ($5.3 billion) for disaster relief.
As Russian orientalist Maria Kicha notes:
“It’s not just houses collapsing. It is at least Recep Tayyip Erdoğan and his Justice and Development Party who are collapsing, and at maximum, Türkiye”.
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