Earthquake in Syria: What is the Cost of Reconstruction?

The World Bank has revealed that two earthquakes that occurred in Syria in February might lead to a contraction of Syria's real GDP by 5.5 percent in 2023, with the recovery and reconstruction costs in Syria estimated at $7.9 billion over three years. The statement noted that its "rapid damage and needs assessment report" estimates that the earthquakes that struck northern and western Syria on February 6 and February 20 caused physical damages valued at $3.7 billion in the country, with an additional $1.5 billion in economic losses, bringing total losses to $5.2 billion. The World Bank stated that "the additional contraction is primarily driven by the destruction of physical capital and disruptions in business activity," adding that "inflation is expected to rise significantly, mainly driven by the decline in the availability of goods, increased transportation costs, and overall demand for reconstruction materials." The World Bank had previously forecasted a 3.2 percent contraction in Syria's GDP for 2023 due to the ongoing conflict, rising prices of grain and energy, electricity outages, and water scarcity that limits crop production.