Turkey Faces Post-Quake Economic Hit as Some Assets Stop Skid

  • Human tragedy complicates economic agenda before elections
  • Country may spend 5.5% of GDP on crisis: Bloomberg Economics
Turkey’s President Recep Tayyip Erdogan visits displaced residents in Kahramanmaras, Turkey, on Feb. 8.Photographer: Anadolu Agency/Anadolu
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A daunting economic landscape will exacerbate the humanitarian catastrophe wrought by a pair of earthquakes on Turkey, as early estimates of the damage point to mounting inflation and budget risks.

Turkey has suspended trade on its main stock stock exchange following a sharp drop and the lira remains propped upBloomberg Terminal by support measures. Meanwhile, Turkish financial assets whose movements remain unrestricted largely stabilized, with some even appreciating on Thursday.