The economic damage of the earthquake is 150 billion dollars

While damage assessment efforts accelerated after the Kahramanmaraş earthquake, which affected the lives of millions of people, investigations revealed that Turkey can repair the damage to the region and economy within 5 years. According to the report prepared by the Turkish Economic Policy Research Foundation and signed by Burcu Aydın Özüdogru, the cost of the region’s redevelopment plan will reach approximately 150 billion USD in a period of 5 years.

ADDITIONAL EXPENDITURE OF 600 BILLION

According to the estimates made in the report, the costs of construction, reinforcement and repair of superstructures and infrastructures will be around 88,000 million dollars. While half of this cost is expected to be financed from public resources, the second largest cost was shown as loss of vehicles, accessories, inventories, and consumables. The size of this item was estimated at 35 billion dollars. According to the report, it was indicated that the annual cost of the total expenses derived from the earthquake in the first 3 years will be around 30 to 40 billion dollars and most of them will have to be financed by the public.

In the report, which emphasized that earthquake-related expenditures would require a 5-year financing plan, it was estimated that in the first few years it would create an additional financing need of 2.5 to 3.5 percent compared to national income, and about 8 percent overall. The additional expense that the earthquake would bring to the 2023 budget was estimated at TL 600 billion. Once again, current supports such as housing, care, education and employment for the earthquake-affected population were predicted to be at the level of TL 320 billion (USD 17 billion). The annual cost of temporary shelter support is estimated at 78 billion TL ($4 billion), the report says: “In the long term, Turkey’s reshaping of its development model in accordance with disasters will create an additional burden significant in public finances for the next 10 years will create”.

short term measures

The short-term economic measures highlighted in the report are listed below: “Short-term work allowance, İŞKUR and KOSGEB supports must be implemented quickly and effectively for the continuation of employment. For the effective management of macro-financial risks, monetary and fiscal policy must be oriented towards internationally accepted reasonable policies. The cities to be restored should be planned taking into account Turkey’s agricultural and livestock production potential. The fight against poverty must be carried out effectively”.

Inflation Rises, Tourism Revenues Fall

In the report, which indicated that the bill would increase because the earthquake coincided with a period of economic slowdown and increased risks, it was indicated that economic growth would be around 3 percent, 1.2 points below the expected baseline scenario. in 2023. “The earthquake will shoot up consumer and producer prices in the short term, and food prices will rise in 2023. Long-term price pressure on housing and rental prices it will continue, and may have a negative impact on tourism revenue in 2023.