Earthquake in Turkey May Lead to Decline in GDP

The European Bank for Reconstruction and Development announced in a report that the potential economic repercussions of the powerful earthquake that struck Turkey could result in a 1 percent decrease in the country’s GDP this year. The bank added that this is a "reasonable estimate" due to the expected boost from reconstruction efforts later in the year, which will offset the negative impact on infrastructure and supply chains. The bank's chief economist Beata Javorcik told Reuters, "The earthquake largely affected agricultural areas and regions with light manufacturing industries, so its repercussions on other sectors are limited." Turkey and neighboring Syria suffered a devastating earthquake on February 6, which claimed the lives of over 41,000 and left millions in need of humanitarian assistance, as many survivors remain displaced in near-freezing temperatures. Growth forecasts for Turkey, the largest recipient of funding from the European Bank for Reconstruction and Development, have been revised down to 3 percent from 3.5 percent for 2023 without accounting for the earthquake's impact in these estimates.