TODAY’S – ISIL aance and Syrian civil war have cost Turkey $12.5 billion

ISIL aance and Syrian civil war have cost Turkey $12.5 billionThe economic cost to Turkey of the aance of the Islamic State in Iraq and the Levant (ISIL) through northern Iraq and the ongoing civil war in Syria has so far totaled $12.

5 billion, according to veteran economics columnist Suleyman YaIar, who has examined the effects of regional developments on the Turkish economy in the light of a recent report by the World Bank.In his Monday column in the Taraf daily, YaIar stated that Turkish citizens have lost 15 percent of their income, meaning an annual loss of $162, as a result of the conflicts in the countries along Turkeyand#39s southern borders.

The andldquoEconomic Effects of the Syrian War and the Spread of the Islamic State on the Levantandrdquo report released by the World Bank in December argues that the direct cost of the recent turmoil to the economies of regional countries such as Egypt, Syria, Iraq, Jordan, Lebanon and Turkey has so far amounted to $35 billion. However, YaIar claims that $12.

5 billion of the economic setback has hit the Turkish economy.Although the report revealed that Turkeyand#39s loss of 15 percent of its GDP per person is negligible compared to that of Jordan, whose per capita income has decreased by 11 percent, YaIar stated that the total losses sustained by Turkey are substantially higher since the population of Turkey and the GDP per person is relatively higher than in regional countries.

Examining Turkeyand#39s situation alongside that of Jordan and Lebanon, since these countries have received the highest number of refugees, the report underlines that the influx of refugees has increased the volume of consumption in host countries, putting pressure on the demand for goods and services and that the additions to the labor market has not been beneficial for native workers. The report adds that the price of accommodation has risen in both Lebanon and Turkey.

In Turkey, trade losses are much greater than any direct losses from the war, the report states, arguing that Turkey has mostly suffered from an inability to pursue business services and construction. Turkish companies have missed out on nearly $1.

6 billion in exports to countries in the region due to the conflicts.

SOURCE: Today’s Zaman