The European Bank for Reconstruction and Development said in a report released Thursday that the potential economic fallout from the massive earthquake that hit Turkey could lead to a 1% decline in the country’s gross domestic product this year.
The bank added that this is a “reasonable estimate” due to the expected increase in recovery work at the end of the year, which will offset the negative impact on infrastructure and supply chains.
The bank’s chief economist, Beata Ivorczyk, told Reuters: “The quake affected mainly agricultural and light industrial areas, so its impact on other sectors is limited.”
Turkey and neighboring Syria were hit by a devastating earthquake on February 6 that killed more than 41,000 people and left millions in need of humanitarian assistance, leaving many survivors homeless in near freezing temperatures.
Growth projections for Turkey, the largest recipient of financing from the European Bank for Reconstruction and Development, have been revised up to 3% from 3.5% in 2023, excluding earthquake impacts in these estimates.
On Wednesday, the Turkish lira hit a new record low.
