After $42.8 million aids .. How Turkey economy affected by the earthquake?

The International Monetary Fund "IMF" revealed, that the devastating earthquake that struck southern Turkey and northern Syria last Monday, its impact on the Turkish economy will not be similar to that of the 1999 earthquake.

Mahmoud Mohieldin, Executive Director of the International Monetary Fund, said that "public and private investment in reconstruction may give a boost to GDP growth after the initial impact of the disaster over the next few months."

Inflation risks

At the same time, the US "Bloomberg" agency said that early estimates of the damage caused by the earthquake in Turkey indicate escalating inflation and budgetary risks.

She pointed out that the decline in stock prices and the jump in bond yields indicate the existence of fears that the gross domestic product will suffer huge losses, in addition to weakening the country's financial position.

Turkish economy

Economic analysts said, "The Turkish economy is receiving a loss due to the costs of the current disaster at a time when it is already suffering from weak confidence, which exacerbates the risks of another collapse in the market, taking into account the existing weaknesses in the currency and the external account."

Erdogan under greater pressure

“Bloomberg” indicated that while the focus is currently on saving lives, the need to develop plans for rebuilding in advance of the elections scheduled for next May likely puts the government of President Recep Tayyip Erdogan under greater pressure to announce enhanced spending plans.

One economist said that "government spending on earthquakes in Turkey could account for 5.5% of GDP, and a possible government-supported credit plan could increase that percentage."

$42.8 million to help Turkey

The World Health Organization announced that the number of people affected by the devastating earthquake that struck Turkey and Syria last Monday has reached about 26 million, warning that dozens of hospitals have been damaged.

With the death toll from the earthquake exceeding 25,000, the United Nations World Health Organization launched, on Saturday, February 11, an urgent appeal to raise $42.8 million to help it meet emergency and major health needs.