Earthquake damage to Turkey’s economy could exceed $84 billion
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Two powerful earthquakes that occurred in Turkey on February 6 caused damage to the national economy in the amount of $ 84 billion, which is about 10% of the country’s GDP, Bloomberg reported, citing data from the Confederation of Entrepreneurs and Business Circles of the Republic.
In the confederation, the damage from buildings destroyed by earthquakes was estimated at about $70.8 billion. In addition, the consequences of earthquakes will lead to a decrease in the revenue side of Turkey’s budget by $10.4 billion, and labor losses will cost the country’s economy $2.9 billion.
The confederation’s estimates were based on the 1999 earthquakes near the Turkish city of Izmit, 90 kilometers south of Istanbul, which killed about 18,000 people. The death toll has now far exceeded that of the 1999 earthquake, and thousands of people are still missing.
However, it is worth noting that the confederation’s estimates are higher than those of other economists. However, many, including established financial conglomerate Barclays Plc, stressed that it is too early to assess the full implications.
According to the report, damage to Turkey’s infrastructure, including roads and electricity grids, as well as hospitals and schools, could lead to the country’s budget deficit of 5.4% of GDP this year, as opposed to the official forecast of 3.5%.
President Recep Tayyip Erdogan promised to allocate 100 billion liras, or $5.3 billion, for the elimination of the consequences of earthquakes.
Authors – Beryl Akman;
Source – Bloomberg
Translation – Daniil Prilepsky “Moscow Truth”
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