World Bank estimates Syria's three-year recovery needs from earthquakes at $7.9 billion

(Patria) - The World Bank announced that the February earthquakes will cause a 5.5 percent decrease in Syria's real GDP in 2023, and the recovery and reconstruction needs are estimated at $7.9 billion over three years, Reuters reported.

The World Bank stated that its rapid damage and needs assessment report shows that the earthquakes that hit northern and western Syria on February 6 and 20 caused $3.7 billion in physical damage in the country, with an additional $1.5 billion in economic losses due to the combined impact of $5.2 billion in damage.

The World Bank had previously projected a 3.2 percent decrease in Syria's economic output for 2023, due to the ongoing conflict, high grain and energy prices, and shortages, along with water scarcity limiting crop production.

The earthquakes will cause the GDP contraction to increase by an additional 2.3 percentage points to 5.5 percent for the year, exacerbating the effects of the twelve-year conflict in Syria.

"The additional contraction is primarily caused by the destruction of physical capital and disruptions in trade activities," the World Bank said in a statement.

"Inflation is expected to rise significantly, primarily due to reduced availability of goods, increased transportation costs, and increased overall demand for reconstruction materials," it added.

The World Bank estimates the recovery and reconstruction needs in the six analyzed regions at $7.9 billion, of which $3.7 billion is for the first year. An estimated $4.2 billion will be needed over the next two years.

The Bank announced that the agriculture sector has the largest needs (27 percent of the total), followed by housing (18 percent), social protection (16 percent), and transport (12 percent).