Report says Earthquakes could trigger loss of up to 1% of Turkish GDP

A new economic report on Thursday says the February 6 earthquakes that killed more than 40,000 people in Turkey and Syria could result in a loss of up to 1% of the Turkish gross domestic product (GDP).

It came amid uncertainties over a possible delay of general elections, set for June, due to the devastating earthquakes.

The report released by the European Bank for Reconstruction and Development (EBRD) which also reiterated country is already grappling with an economic crisis.

The bank said it was 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.

EBRD chief economist Beata Javorcik told News corespondents that the earthquake affected to a large extent agricultural areas and areas where there is light manufacturing, so spillovers to other sectors are limited.

Growth for Turkey, the single biggest recipient of EBRD funds, has been revised down to 3% from 3.5% in 2023, without considering the impact of the earthquake in the estimates.

In another development, US Secretary of State Antony Blinken will travel Sunday to Turkey to discuss quake relief, making his first trip to the NATO ally which has had turbulent relations with Washington.

According to State Department spokesman Ned Price, Blinken will visit Incirlik air base, through which the US  has shipped aid, and then hold talks in the capital Ankara on continued US support.

The US has flown in around 200 rescuers and contributed an initial $85 million in relief for Turkey, deploying Black Hawk and Chinook helicopters to bring supplies to the worst-hit areas.