The tremors could result in loss of up to 1% of Turkey’s GDP in 2023 - report
The potential economic effects of Turkey’s devastating earthquakes could lead a loss of up to 1% of the country's gross domestic product (GDP) in 2023, Reuters said, citing a report published by the European Bank for Reconstruction and Development (EBRD) on Thursday.
According to the report, this is a “reasonable estimate” due to the expected boost from reconstruction efforts later this year, which will offset the negative impact to infrastructure and supply chains, Reuters said.
Speaking to Reuters, EBRD chief economist Beata Javorcik said the earthquake affected to a large extent agricultural areas and areas where there is light manufacturing.
“So spillovers to other sectors are limited," she said.
“GDP growth in Turkey slowed significantly in 2022 and is expected to fall further to 3 % in 2023 and 2024, as growing external financing requirements and political uncertainty associated with elections create significant economic vulnerabilities,” EBRD said.
According to the report, these forecasts do not take into account any impact on the country’s economy of last week’s earthquakes.