The European Bank for Reconstruction and Development (EBRD) stated in a report released on Thursday that the economic repercussions of the earthquake in Turkey could cause a loss of up to 1% of the nation’s gross domestic product this year.

The bank stated that this is a “fair estimate” because the expected boost from restoration activities later this year will counteract the harm to infrastructure and supply networks.

“The earthquake affected to a large extent agricultural areas and areas where there is light manufacturing, so spillovers to other sectors are limited,” EBRD chief economist Beata Javorcik told Reuters.

Turkey and neighboring Syria have been rocked by a devastating earthquake on Feb. 6 which has killed more than 41,000 people and left millions in need of humanitarian aid, with many survivors having been left homeless in near-freezing winter temperatures.

Growth for Turkey, the single biggest recipient of EBRD funds, has been revised down to 3% from 3.5% in 2023, without considering the impact of the earthquake in the estimates.

The bank added that growing external financing requirements and political uncertainty associated with elections in 2023 create significant economic vulnerabilities.

Turkey’s earthquake has thrown into disarray plans for elections to be held by June, sparking frantic debate within President Tayyip Erdogan’s government and the opposition over a possible delay.

“As depreciation of the Turkish lira outpaced inflation since 2015, Turkey’s exports have been growing fast, benefiting from lower costs expressed in US dollars,” the report added.