Although it has been a week since the earthquake catastrophe, no end to the pain and suffering is in sight. As we start clearing away debris, there is already evidence that more lives have been lost than initially expected, and costs will be far greater.
The magnitude of the economic repercussions resulting from the earthquake in Türkiye, which will impact 13.6 million people across the country, depends heavily on how quickly and consistently corrective measures are taken to mitigate the effects of the destruction.
How Important Is The Region For The Turkish Economy?
With a population of 13,645,000 residing in 10 provinces prone to earthquakes, 16% of Türkiye‘s total populace lives within the seismic zone. Adana and Urfa have the highest population but Gaziantep, Kahramanmaraş, Hatay, and Malatya – areas that experienced catastrophic tremors this year – hold 42% of people living here. As for economic contributions from these quake-prone regions, it adds up to 9.31%, i.e., almost 10% of total GDP as per 2021 data!
In 2022, Türkiye‘s exports from the 10 earthquake-affected provinces will bring in a whopping 21.6 Billion Dollars (8.5% of total exports). Gaziantep, Kahramanmaraş, Hatay, and Malatya are at the forefront here – even though these 4 provinces make up only 5% of tax revenues for Türkiye as a whole, they still contribute half of the tax revenue from the area!
So How Much Is The Total Cost Of The Earthquake?
It is projected that the total cost of this earthquake will be approximately 80 billion dollars, with 15 billion attributed to the quake and 25 billion stemming from a potential income loss. Furthermore, 40 billion must be set aside for reconstruction efforts and sustaining those affected by it.
You might check: Pros and Cons to Consider When Choosing a Cold Wallet
