It brings a load of 391 billion to citizens and companies

Although more than a month has passed since the earthquake, it is estimated that the debt door will open for Turkey, which is still continuing its rubble removal efforts, and inflation may rise to 3 digits in the future. According to the Center for Economic and Social Research at the University of Bahcesehir (BETAM), which estimates the loss faced by the country’s economy as a result of the devastating effects of the earthquakes, between 77.4 and 104.8 billion dollars, companies and households they will cover $20.6 billion (TL391.4 billion) of this.

2.5 MONTHS WILL STOP PRODUCTION

BETAM Prof. Dr. According to the report signed by Kamil Yılmaz, it was estimated that the part of the earthquake bill that the state would cover would be between 63.5 and 82.3 billion dollars. Noting that the loss of income in the region could reach 12.6 billion dollars due to damage to production facilities, the report pointed out that if migration from the region is permanent, the bill will be heavier. It was indicated that economic activities in the region are expected to stop for up to 2.5 months, while the impact of the earthquake on building and social capital could reach up to 86,000 million dollars. In the report, it was stated that in order to deal with the financial burden, some taxes such as the Corporation Tax should be increased temporarily, as well as property taxes on zoning income should be increased after the election.

Debt inflation could reach 3 digits

In the report, it was noted that Turkey will need financing of $250 billion by 2023 with the earthquake bill, while “Increasing the budget deficit to 6 percent in 2023 for earthquake zone expenditures requires borrowing from abroad.” . If it goes its way in the May 14 elections, it is certain that the government will insist on the policies it has followed for the last 17 months. Under these conditions, it will be much more difficult to bear the additional financial burden of the earthquake. The government is likely to turn to more monetary financing to finance the budget deficit, which may push already very high inflation to triple-digit levels.