17:55 - 16.02.2023

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February 16, Fineko/abc.az. The EBRD has published its forecast regarding the initial impact of the earthquake on the Turkish economy, ABC.AZ informed with reference to the EBRD regional report.

The EBRD noted that Turkiye's GDP growth slowed significantly in 2022. Economic growth is expected to slow to 3% in 2023 and 2024, as growing external financial demands and political uncertainty regarding the 2023 elections create significant economic weaknesses. The bank said that this forecast does not include the potential consequences of the earthquake in February 2023, and it is too early to make any final predictions about its impact on overall economic activity in 2023.

The EBRD, however, believes that a reasonable estimate gives reason to believe that the earthquake will lead to the loss of 1% of GDP of the Turkish economy in 2023.

"Restructuring efforts are expected to partially offset the negative impact of the damage to supply chains and infrastructure," the EBRD says.