The devastating earthquakes centered in Kahramanmaraş have had a massive economic impact on Türkiye, with total losses exceeding $100 billion. Government-backed financial aid, incentives, and grants continue to support businesses and industries affected by the disaster.
Economic Damage and Industrial Losses
The manufacturing sector alone suffered ₺81.1 billion in damages across 8,599 firms, with building damage accounting for ₺31.1 billion, machinery losses at ₺24.8 billion, and stock damage at ₺15.1 billion. The earthquakes also led to a 13% drop in exports from the affected regions in 2023, contributing to the limited 1% growth in Türkiye’s total exports that year.
Türkiye’s budget deficit surged in 2023, with earthquake-related expenditures reaching ₺960 billion, making up 3.2% of the total deficit. In 2024, the government allocated ₺1.03 trillion for earthquake-related spending. By the end of 2023, the total earthquake recovery expenditure reached ₺2.6 trillion.
Massive Budget Allocations for Recovery
The Medium-Term Program targets earthquake-related spending at 2.5% of GDP in 2024, 0.9% in 2025, and 0.8% in 2026. This year, ₺584 billion has been allocated for disaster risk reduction, rebuilding infrastructure, and meeting the needs of earthquake victims. The 2025 Investment Program includes 5,061 new projects, with ₺511 billion allocated specifically for earthquake measures.
Financial Support for Businesses
According to the Ministry of Trade, earthquake-affected businesses received financial support through Halkbank, with a one-year grace period and a five-year repayment plan. From February to November 2023, 27,202 small business owners were granted ₺6.7 billion in loans.
Between February 2023 and December 2024, ₺41.4 billion in loans was extended to small business owners in 12 provinces, with 94,430 loan transactions completed. Additionally, under the Post-Earthquake Micro, Small, and Medium Enterprises Revitalization Program, ₺7.3 billion in funding was distributed to 21,000 businesses in 2024.
Employment Support and Wage Assistance
Significant efforts have been made to sustain employment in the region. Under İŞKUR’s Public Benefit Program, over 77,000 people were provided jobs, with a ₺15 billion budget allocation.
To prevent layoffs, the Short-Term Employment Allowance was introduced, benefiting over 111,000 workers with ₺1 billion in payments. Additionally, ₺700 million was distributed to 82,000 individuals under the Cash Wage Support Program, ensuring continued health insurance coverage for those without prior benefits.
As a result, the number of insured employees in the 11 most affected provinces reached 1.93 million by November 2024. The Social Security Institution (SGK) also deferred tax and insurance premium payments for businesses in the affected areas.
Loans and Infrastructure Investments
Businesses impacted by the earthquake were granted ₺30.5 billion in loans backed by the Treasury, with ₺18.3 billion already disbursed. The Ministry of Transport and Infrastructure allocated ₺51.1 billion to rebuild transportation and communication networks. Additionally, the Turkish Catastrophe Insurance Pool (DASK) paid over ₺39.7 billion in compensation across 11 provinces.
Housing and Urban Redevelopment Goals for 2025
According to Minister of Environment, Urbanization, and Climate Change Murat Kurum, a total of 201,580 housing units and commercial properties have been delivered so far.
By the end of 2025, every earthquake survivor is expected to return to permanent housing or reopen their businesses. The government has invested over ₺2 trillion in earthquake recovery and allocated an additional ₺584 billion for 2025.
The “Half from Us” Urban Transformation Project also offers financial support for reconstruction. Residents can receive ₺750,000 in grants and ₺750,000 in low-interest loans to rebuild their homes together with their neighbors.
This comprehensive plan aims to restore economic stability, rebuild infrastructure, and ensure that earthquake victims recover their livelihoods by 2025.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök