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.



Arrests Made in Türkiye over Calls for Shopping Boycott to Support Istanbul's Imprisoned Mayor

Fine art university students shout slogans as they march past an Expresso Lab coffee bar during a peaceful protest after Istanbul's Mayor Ekrem Imamoglu was arrested and sent to prison, in Istanbul, Türkiye, Thursday, March 27, 2025. (AP Photo/Francisco Seco)
Fine art university students shout slogans as they march past an Expresso Lab coffee bar during a peaceful protest after Istanbul's Mayor Ekrem Imamoglu was arrested and sent to prison, in Istanbul, Türkiye, Thursday, March 27, 2025. (AP Photo/Francisco Seco)
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Arrests Made in Türkiye over Calls for Shopping Boycott to Support Istanbul's Imprisoned Mayor

Fine art university students shout slogans as they march past an Expresso Lab coffee bar during a peaceful protest after Istanbul's Mayor Ekrem Imamoglu was arrested and sent to prison, in Istanbul, Türkiye, Thursday, March 27, 2025. (AP Photo/Francisco Seco)
Fine art university students shout slogans as they march past an Expresso Lab coffee bar during a peaceful protest after Istanbul's Mayor Ekrem Imamoglu was arrested and sent to prison, in Istanbul, Türkiye, Thursday, March 27, 2025. (AP Photo/Francisco Seco)

Turkish police detained 11 people Thursday for supporting a shopping boycott as part of protests against the imprisonment of President Recep Tayyip Erdogan’s main rival, state-run media reported.

The Istanbul Chief Public Prosecutor’s Office issued arrest warrants for 16 suspects in an investigation into “hatred and discrimination” and “inciting hatred and hostility” among the public, the Anadolu news agency said.

Among the detained was actor Cem Yigit Uzumoglu, who played Sultan Mehmed the Conqueror in the Netflix docuseries “Rise of Empires: Ottoman,” the Actors’ Union said.

The suspects were held over social media posts calling on people to not to spend money on Wednesday and for businesses to shut their doors in solidarity during the daylong boycott, The AP news reported.

Large-scale anti-government protests began last month after the arrest of Istanbul's opposition Mayor Ekrem Imamoglu on corruption charges that critics say are politically motivated. The government insists the judiciary is independent and free of political interference.

Istanbul prosecutors on Tuesday launched a criminal investigation into earlier boycott calls by Imamoglu’s party targeting companies it alleges support the government. In particular, the opposition identified media firms that did not air images of protests in which hundreds of thousands of people flooded the streets to call for Imamoglu’s release and an end to democratic backsliding.

The leader of Imamoglu’s Republican People’s Party, or CHP, issued a warning after authorities blocked social media accounts supporting Wednesday's boycott.

“We know that you have closed hundreds of pages to date,” Ozgur Ozel wrote on X. “If you become a tool for anti-democratic practices today, if you implement access ban demands, think carefully about what this nation will do to you!”

While in prison, Imamoglu has been confirmed as the CHP's presidential candidate. The next election is currently scheduled for 2028 but is likely to take place earlier.

According to the independent ANKA News Agency, some 2,000 people have been detained since Imamoglu was arrested on March 19, with 316 jailed pending trial. Most face charges relating to participating in protests.

Lawyers for imprisoned protesters on Wednesday said many had suffered mistreatment. The government has not responded to the allegations but on Thursday the police issued a statement denying claims that women had been sexually assaulted in custody as “vile slanders.”