Türkiye Earthquake Could Result in Loss of Up to 1% of Country's GDP in 2023

This handout photograph taken and released by Turkish agency DHA (Demiroren News Agency) shows smoke rising from burning containers at the harbor of Iskenderun in Hatay, a day after a 7.8-magnitude earthquake struck the country's southeast, on February 7, 2023. (Photo by Handout / DHA (Demiroren News Agency) / AFP)
This handout photograph taken and released by Turkish agency DHA (Demiroren News Agency) shows smoke rising from burning containers at the harbor of Iskenderun in Hatay, a day after a 7.8-magnitude earthquake struck the country's southeast, on February 7, 2023. (Photo by Handout / DHA (Demiroren News Agency) / AFP)
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Türkiye Earthquake Could Result in Loss of Up to 1% of Country's GDP in 2023

This handout photograph taken and released by Turkish agency DHA (Demiroren News Agency) shows smoke rising from burning containers at the harbor of Iskenderun in Hatay, a day after a 7.8-magnitude earthquake struck the country's southeast, on February 7, 2023. (Photo by Handout / DHA (Demiroren News Agency) / AFP)
This handout photograph taken and released by Turkish agency DHA (Demiroren News Agency) shows smoke rising from burning containers at the harbor of Iskenderun in Hatay, a day after a 7.8-magnitude earthquake struck the country's southeast, on February 7, 2023. (Photo by Handout / DHA (Demiroren News Agency) / AFP)

The potential economic effects of the earthquake in Türkiye could result in a loss of up to 1% of the country's gross domestic product this year, the European Bank for Reconstruction and Development (EBRD) said in a report published on Thursday.

The bank added this is a "reasonable estimate" due to the expected boost from reconstruction efforts later this year, which will offset the negative impact to infrastructure and supply chains, Reuters said.

"The earthquake affected to a large extent agricultural areas and areas where there is light manufacturing, so spillovers to other sectors are limited," EBRD chief economist Beata Javorcik told Reuters.

Türkiye and neighboring Syria have been rocked by a devastating earthquake on Feb. 6 which has killed more than 41,000 people and left millions in need of humanitarian aid, with many survivors having been left homeless in near-freezing winter temperatures.

Growth for Türkiye, the single biggest recipient of EBRD funds, has been revised down to 3% from 3.5% in 2023, without considering the impact of the earthquake in the estimates.

The bank added that growing external financing requirements and political uncertainty associated with elections in 2023 create significant economic vulnerabilities.

Türkiye’s earthquake has thrown into disarray plans for elections to be held by June, sparking frantic debate within President Tayyip Erdogan's government and the opposition over a possible delay.

"As depreciation of the Turkish lira outpaced inflation since 2015, Türkiye’s exports have been growing fast, benefiting from lower costs expressed in US dollars," the report added.

Türkiye’s lira hit a fresh record low on Wednesday.



Netanyahu Receives Warning from Panel Probing Submarine Purchase 

Israeli Prime Minister Benjamin Netanyahu speaks during a state memorial ceremony at Nachalat Yitzhak cemetery in Tel Aviv on June 18, 2024. (AFP)
Israeli Prime Minister Benjamin Netanyahu speaks during a state memorial ceremony at Nachalat Yitzhak cemetery in Tel Aviv on June 18, 2024. (AFP)
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Netanyahu Receives Warning from Panel Probing Submarine Purchase 

Israeli Prime Minister Benjamin Netanyahu speaks during a state memorial ceremony at Nachalat Yitzhak cemetery in Tel Aviv on June 18, 2024. (AFP)
Israeli Prime Minister Benjamin Netanyahu speaks during a state memorial ceremony at Nachalat Yitzhak cemetery in Tel Aviv on June 18, 2024. (AFP)

An Israeli commission investigating suspected wrongdoing in government purchases of submarines and missile boats from Germany issued a warning to Prime Minister Benjamin Netanyahu on Monday.

The panel notified Netanyahu that based on evidence gathered thus far, it could ultimately determine that he had used his position as prime minister between 2009 and 2016 to greenlight the purchases without due process.

"By doing so, he (Netanyahu) endangered the security of the state and harmed the state of Israel's foreign relations and economic interests," said the panel in its written decision, made public on Monday.

Netanyahu in response said that the submarines were central to Israel's security "in ensuring its existence against Iran, which is trying to destroy us".

"History will prove that Prime Minister Netanyahu was right on this issue as well and made the right decisions for the security of Israel," the statement from his office said.

The commission, established under the previous government in 2022, said that it will soon publish unclassified parts of the evidence collected during the probe into the deal, worth hundreds of millions of dollars.

Netanyahu has struggled to salvage his security credentials since the Oct. 7 attack by Hamas-led fighters, who killed 1,200 people and took more than 250 hostages to Gaza according to Israeli tallies, the worst attack on Jews since the Holocaust.

In the Israeli assault on Gaza that followed, more than 37,000 people have been killed according to Gaza health authorities.