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Home Economy

Turkey’s Earthquake Aftermath: Assessing the Economic Impact and Road to Recovery

Emma Veress by Emma Veress
4 June 2023
in Economy
Reading Time: 2 mins read
0
Turkey's-Earthquake-Aftermath-Assessing-the-Economic-Impact-and-Road-to-Recovery-2

The devastating earthquake in Turkey has left a lasting impact on the affected areas, not only in terms of loss of life and destruction but also its significance within the Turkish economy . Impacted cities, which contribute nearly 10 percent of national income and 8 percent of exports, are important hubs for domestic trade and energy supply . With millions of jobs at stake, the earthquake has disrupted the economic landscape of 11 cities .

Table of Contents

Toggle
  • Projected Consequences on Production, Employment and Exports
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  • Rebuilding for Economic Recovery
  • Moving Forward: Turkey’s Resilience and Future Growth
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Projected Consequences on Production, Employment and Exports

The earthquake’s aftermath is expected to bring about a partial decrease in production, employment and exports . These 11 cities were anticipated to generate $22 billion in exports this year and create around 110,000 new jobs . However the seismic event will likely impact these projections and will create the need for additional investments and incentives for the region’s recovery, especially considering the number of people who have been displaced .

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Rebuilding for Economic Recovery

While the earthquake’s destruction and economic costs will have a negative impact on the economy in the short term, the finalization of reconstruction efforts and the restoration of infrastructure can lessen the effects mentioned . As international organizations present various economic forecasts, the initiation of new construction projects by the government will play a vital role in both the quick recovery of the affected region and the resumption of normal life .

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Moving Forward: Turkey’s Resilience and Future Growth

Despite the challenges posed by recent crises such as the pandemic, global inflation and earthquakes, Turkey has shown resilience and pursued policies focused on employment, production and exports . The Turkish Economy Model, with its expansionary monetary and fiscal policies, is aiming to tackle unemployment risks and foster economic growth . As Turkey gets closer to its 100th anniversary, the country is projected to carry on its upward economic movement, with estimates suggesting a national income surpassing $1 trillion in 2023 and a promising outlook for production and growth potential by 2028 .

With the completion of reconstruction efforts and the implementation of structural reforms, the expected economic performance in the 2024-2028 period will further enhance the Turkish Economy Model . The model which is centered on employment, production and exports, is well-positioned to navigate global shocks and drive the country’s economic progress, including breakthroughs in sectors like tourism too . By strengthening the region’s infrastructure and facilitating a rapid recovery , Turkey could mitigate the long-term economic impact of the earthquake and restore normalcy to the affected areas .

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Emma Veress

Emma Veress

Finance Writer Hello there! My name is Emma, and I'm a daily breaking news journalist covering finance, economics, and crypto on a global scale. I graduated from Eötvös Loránd University with a degree in Communication and Media Studies MA, where I gained a passion for storytelling and analysis. As a journalist, I'm dedicated to providing my readers with accurate and timely news on financial and economic events happening around the world. I believe that by delivering high-quality journalism, I can help people make informed decisions about their finances and investments.

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