Wednesday, December 6, 2023
HomeBusinessTurkey puts economic toll from earthquakes at about $104bn

Turkey puts economic toll from earthquakes at about $104bn

The earthquakes that shook Turkey’s southeast last month caused about 2 trillion liras ($103.6 billion) of damage, President Recep Tayyip Erdogan’s government said in an official assessment published days before the European Union holds a conference to aid the reconstruction effort.

The report on Friday is among the most comprehensive yet and covers the damage suffered by buildings, infrastructure, industry, insurance and the ensuing macroeconomic impact. It calculates the toll on the economy at the equivalent of about 9% of this year’s gross domestic product, the presidency’s strategy and budget office said.

The 11 provinces that were impacted by the earthquakes accounted for 9.8% of the national economy and 8.6% of exports in 2022, according to the report. Their share in textile exports was much higher at 35%.

In a preliminary assessment in February, the World Bank estimated the earthquakes caused $34.2 billion in physical damages. A more pessimistic estimate came from business group Turkonfed, which saw costs at over $84 billion.

The 7.7 and 7.6-magnitude tremors on February 6 — and their aftershocks — killed more than 50 000 people in Turkey and Syria, leaving hundreds of thousands people homeless. Erdogan, who faces a crucial election on May 14, pledged to rebuild 319 000 homes in one year.

The European Commission and the Swedish Presidency of the Council of the EU will host an International Donors’ Conference on March 20 in Brussels to support the people impacted by the earthquakes.

© 2023 Bloomberg



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