Marmara quake could result in 1-year state budget loss: Report

ISTANBUL

A potential major earthquake is projected to incur a staggering $325 billion in damages, posing an economic burden equal to one year of the state's budget, Daily Hürriyet has reported.

The article published on March 18 highlighted the aftermath of the earthquakes that struck the country's south last February, with nearly 40,000 buildings collapsing and over 200,000 structures sustaining damage.

The economic toll of the Feb. 6 earthquakes, particularly impacting small businesses and industrial facilities, exceeded $100 billion, the report said.

Following the February earthquakes, experts have increasingly sounded the alarm for the Marmara region, which hosts both the country's most populated city, Istanbul, and industrial centers, painting a bleaker picture.

According to the news report, insurers' modeling indicates that a major earthquake hitting the Marmara region would result in $325 billion in damages.

With only 10 percent of the region's structures insured, insurance companies would cover only $32 billion of this immense loss, leaving the remainder to be shouldered by the government, the report said.

Considering the reconstruction of residences, reinforcement of damaged buildings and infrastructure projects, the state's economy could face a burden nearly equivalent to Türkiye’s budget for entire year.

The article emphasized the reluctance of homeowners in Istanbul to invest in insurance and highlighted insufficient insurance rates in the city, advocating for an "insurance mobilization" campaign to address the issue.