Turkey could see a 1% drop in GDP following earthquake

The potential economic impact of the earthquake in Turkey could result in a loss of up to one percent 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.

GDP growth in Turkey slowed significantly in 2022 and is expected to fall further, to three per cent in 2023 and 2024 said the EBRD report. 

The report also added that growing external financing requirements and political uncertainty associated with the upcoming elections created significant economic vulnerabilities.