World Bank: Feb. 6 Quakes Caused $34.2 Bln in Damage in Türkiye

The World Bank said the initial rapid damage assessment for Türkiye of $34.2 billion was equivalent to about 4% of its economic output in 2021. Reuters
The World Bank said the initial rapid damage assessment for Türkiye of $34.2 billion was equivalent to about 4% of its economic output in 2021. Reuters
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World Bank: Feb. 6 Quakes Caused $34.2 Bln in Damage in Türkiye

The World Bank said the initial rapid damage assessment for Türkiye of $34.2 billion was equivalent to about 4% of its economic output in 2021. Reuters
The World Bank said the initial rapid damage assessment for Türkiye of $34.2 billion was equivalent to about 4% of its economic output in 2021. Reuters

The two major earthquakes which hit Türkiye on Feb. 6 caused about $34.2 billion in direct physical damage, but total reconstruction and recovery costs facing the country could be twice as high, the World Bank said on Monday.

The bank estimates that the earthquakes would also shave at least half a percentage point off Türkiye's forecast gross domestic product growth of 3.5% to 4% in 2023, Humberto Lopez, World Bank country director for Türkiye, told reporters.

The situation in Syria, which was also affected by the quakes, was "really catastrophic", said Anna Bjerde, World Bank Group vice president for Europe and Central Asia. The bank will release a separate damage estimate for Syria.

Bjerde said the initial rapid damage assessment for Türkiye of $34.2 billion was equivalent to about 4% of its economic output in 2021, but that did not include indirect or secondary impacts on the growth of its economy, or the most recent earthquake a week ago.

"Our experience is that reconstruction needs can run as high as two to three times the estimated direct physical damage," Reuters quoted her as saying.

The Feb. 6 earthquakes of 7.8 magnitude and 7.5 magnitude, the most deadly in modern Türkiye's history, killed more than 44,300 people.

The World Bank said the earthquakes had been followed by more than 7,500 aftershocks, creating the largest such disaster to strike Türkiye in over 80 years.

The bank's Global Rapid Post-Disaster Damage Estimation (GRADE) report estimates that 1.25 million people were made homeless by damage to their homes, or their complete collapse.

The heaviest damage occurred in 11 provinces in southern Türkiye that have some of the country's highest poverty rates, and host more than 1.7 million Syrian refugees, or about half the total Syrian refugee population in Türkiye, the report found.

The World Bank has provided immediate assistance of $780 million for Türkiye from two existing projects in Türkiye, as well as $1 billion in a new emergency recovery project.



Gold Firms in Thin Trade as Investors Weigh Fed Outlook

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Firms in Thin Trade as Investors Weigh Fed Outlook

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices firmed on Monday, although trading was thin due to the holiday season and as investors looked for cues on the US Federal Reserve's monetary policy trajectory for next year after it signaled gradual easing in its latest meeting.
Spot gold added 0.3% at $2,628.63 per ounce, as of 0941 GMT, trading in a narrow $16 range. US gold futures eased 0.1% to $2,643.10.
"(It's a) Quiet day with lower liquidity and limited data releases during the holiday season," said UBS analyst Giovanni Staunovo.
"We retain a constructive outlook for gold in 2025, targeting a move to $2,800/oz by mid-2025."
The Fed cut rates by 25 basis points on Dec. 18, although the central bank's predictions of fewer rate cuts in 2025 resulted in a decline in gold prices to their lowest level since Nov. 18 last week.
US consumer spending increased in November, supporting the Fed's hawkish stance, a sentiment that was also shared by San Francisco Fed President Mary Daly.
Higher interest rates dull non-yielding bullion's appeal.
"Presently, we are in a lull for Christmas week with the gold price trending sideways. Federal Reserve policy is clear with expectations of rising interest rates in the second half of the year," said Michael Langford, chief investment officer at Scorpion Minerals.
"The next big impact is the incoming presidency of (Donald) Trump and the initial presidential decrees that he might declare. This has the potential to add to market volatility and be bullish for gold prices."
Gold, often considered a safe-haven asset, typically performs well during economic uncertainties.
Spot silver rose 0.8% to $29.75 per ounce and platinum climbed 1.3% to $938.43. Palladium steadied at $920.53.