Earthquake Disaster in Türkiye May Also Cause A Major Economic Crisis

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!

Earthquake Disaster in Türkiye May Also Cause A Major Economic Crisis

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.

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Ana Costa

I am resourceful and passionate about taking on whatever task lies ahead of me. I thrive in workplaces that promote diversity and inclusivity, whether it is working in journalism or being in the first place of global progressive social movements. I'm a journalist with a keen interest in reporting on daily global economic, finance, and crypto news. I have a deep understanding of how financial markets and global economies work, and I'm passionate about covering the latest developments in the world of cryptocurrency. I believe that the intersection of finance and technology is where the most exciting stories can be found, and I'm committed to staying up-to-date with the latest trends and emerging technologies in these areas. With years of experience in reporting and a strong network of sources, I strive to provide my readers with insightful and accurate coverage of the topics that matter most. Whether it's a breaking news story, an in-depth analysis of market trends, or an interview with a leading industry expert, I'm always ready to tackle the next big story and deliver it to my audience in a clear and engaging way. I focus on social media marketing, digital marketing, and market research. My strengths lie in creative marketing plans, collaboration with team members, and an eye for rising trends in different target markets.

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