Bloomberg said it would take tens of billions of dollars to rebuild Turkey from the devastating earthquake that hit it, and experts pointed out that reconstruction efforts could lead to economic recovery.
Onur Ant, a Bloomberg writer, said the long-term economic damage will be more complex as the aid the world is giving to Turkey now is first aid in the aftermath of the earthquake.
Onur Ant continued: “It is difficult to accurately assess the scale of the economic impact, but according to Bloomberg economists, the cost of rebuilding the affected areas could be 5.5% of Turkey’s GDP. “
The writer added: “Some experts believe that in such cases, reconstruction efforts may lead to economic recovery, although this may come too late.”
However, he pointed out that the risks that the Turkish banking sector could be exposed to from borrowers in the disaster area could be as high as $30 billion, and that the earthquake caused the collapse of the Turkish Stock Exchange, which decided to suspend trading for a period of time.
The equivalent of 5.5% of Turkish GDP needed for reconstruction is about $50 billion, based on recent years of Turkish economic performance.
Last Monday morning, a strong earthquake hit parts of Turkey and Syria, killing and injuring thousands of people and destroying homes and infrastructure. Experts fear that the earthquake will cause an increase in the economic burden on the country in the coming period.
Source: RT+ bloomberg