Turkey bans layoffs as earthquake sends tremors through fragile economy

Turkey was already battling runaway inflation, which had reached over 80% in October last year, and was relying on rich allies for funding to keep its economy afloat when a massive earthquake killed tens of thousands, razed entire cities and left millions needing urgent help.

The earthquake, which has killed over 46,000 people has added to the woes of the already flailing economy with massive reconstruction costs. 

According to the Turkish Enterprise and Business Confederation, the quake is expected to cost the country up to $84.1 billion. The Turkish Enterprise and Business Confederation said that the costs comprise $70.8 billion to repair homes, $10.4 billion from loss of national income and $2.9 billion from loss of working days.

A financial express report quotes Murat Kubilay, an independent financial advisor on the Turkish economy, who said that the quake will slow the economic activity on the national level and the recovery from it will not happen before 2024

For now, Turkey launched a temporary wage support scheme and banned layoffs in 10 cities to protect workers and businesses from the financial impact of the massive earthquakes that hit the south of the country earlier this month.

According to reports, employers whose workplaces were “heavily or moderately damaged” would benefit from support to partially cover wages of workers whose hours had been cut, the country’s Official Gazette said on Wednesday.