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.



Maldives Ban Israelis to Protest Gaza War 

The Maldives had lifted a previous ban on Israeli tourists in the early 1990s and briefly moved to restore relations in 2010. (Getty Images/AFP)
The Maldives had lifted a previous ban on Israeli tourists in the early 1990s and briefly moved to restore relations in 2010. (Getty Images/AFP)
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Maldives Ban Israelis to Protest Gaza War 

The Maldives had lifted a previous ban on Israeli tourists in the early 1990s and briefly moved to restore relations in 2010. (Getty Images/AFP)
The Maldives had lifted a previous ban on Israeli tourists in the early 1990s and briefly moved to restore relations in 2010. (Getty Images/AFP)

The Maldives announced Tuesday it was banning the entry of Israelis from the luxury tourist archipelago in "resolute solidarity" with the Palestinian people.

President Mohamed Muizzu ratified the legislation shortly after it was approved by parliament on Tuesday.

"The ratification reflects the government's firm stance in response to the continuing atrocities and ongoing acts of genocide committed by Israel against the Palestinian people," his office said in a statement.

"The Maldives reaffirms its resolute solidarity with the Palestinian cause."

The ban will be implemented with immediate effect, a spokesman for Muizzu's office told AFP.

The Maldives, a small Islamic republic of 1,192 strategically located coral islets, is known for its secluded white sandy beaches, shallow turquoise lagoons and Robinson Crusoe-style getaways.

Official data showed that only 59 Israeli tourists visited the archipelago in February, among 214,000 other foreign arrivals.

The Maldives had lifted a previous ban on Israeli tourists in the early 1990s and briefly moved to restore relations in 2010.

Opposition parties and government allies in the Maldives have been pressuring Muizzu to ban Israelis as a statement of opposition to the Gaza war.

Israel's Ministry of Foreign Affairs urged its citizens last year to avoid travelling to the Maldives.

The Gaza war broke out after Palestinian group Hamas' October 2023 attack on Israel, which resulted in the deaths of 1,218 people, mostly civilians, according to an AFP tally based on official Israeli figures.

Gaza's health ministry said on Sunday that at least 1,613 Palestinians had been killed since March 18, when a ceasefire collapsed, taking the overall death toll since the war began to 50,983.