The total burden of the earthquake on the Turkish economy is 2 trillion TL
The Department of Strategy and Budget of the Presidency published the Report on the 2023 Kahramanmaraş and Hatay earthquakes.
While revealing the extent of the losses and damages caused by the earthquake, the report included determinations on the damages, losses and needs in physical property, as well as human losses. The total burden on the Turkish economy caused by the earthquake was estimated to be approximately TL 2 trillion (USD 103.6 billion).
14 MILLION CITIZENS, 1.7 MILLION IMMIGRANTS AFFECTED
The report indicated that the total population of the 11 provinces affected by the earthquake, in which more than 48,000 people lost their lives, was 14 million, representing 16.4 percent of the country.
While 13.5 million people, equivalent to 96.7 percent of this population, lived in the provincial and district centers, the rest lived in towns and villages. In addition, 1 million 738 thousand people in the earthquake area consisted of the immigrant population residing under temporary protection.
1.5 MILLION PEOPLE WORK ILLEGALLY
According to 2021 data, while 3.8 million people were employed in the disaster region covering 11 provinces, the share of regional employment in the country’s employment was at the level of 13.3%.
2.3 million of the employees worked formally and 1.5 million worked informally. The informal employment rate in the disaster area was at the level of 39 percent.
TOTAL LOAD OF THE EARTHQUAKE 2 BILLION TL
Housing damage was the largest component of the total earthquake burden on the Turkish economy, at 1.07 trillion Turkish lira ($56.9 billion). Damage to housing amounted to 54.9 percent of the total load.
The second weighted loss was the destruction of public infrastructure and service buildings with TL 242.5 billion (USD 12.9 billion). Damage to the private sector, excluding housing, amounted to TL 222.4 billion (USD 11.8 billion). This item included damage to the manufacturing, energy, communications, tourism, health and education sectors, small businesses, and places of worship.
In addition, when losses in the insurance sector, loss of merchant income and macroeconomic effects are taken into account, the total burden of the earthquake disaster on the Turkish economy was approximately TL 2 trillion ($103 ,6 billion). It was predicted that this size could reach approximately 9 percent of national income by 2023.
APPROXIMATELY 10 PERCENT OF GDP
Although the main productive activities in the region were carried out in the services, industry and agriculture sectors, respectively, the participation of the provinces affected by the earthquake in the Gross Domestic Product (GDP) was 9.8 percent in 2021. In addition, in this region a national income of 79 billion dollars was formed.
The region’s per capita national income level was significantly below the Turkish average. Considering the data for the year in question, the average GDP per capita of the 11 provinces affected by the earthquake is calculated at 5,924 dollars.
The contribution of 11 earthquake-affected provinces to Turkey’s 11.4 percent economic growth in 2021 was 0.98 points.