LONDON: Direct costs from the destruction of physical structures in Turkiye from the devastating earthquake on Feb. 6 could amount to 2.5% of growth domestic product or $25 billion, JPMorgan said on Thursday.

The combined death toll from the quake in Turkiye and Syria has climbed to more than 41,000, and millions are in need of humanitarian aid, with many survivors having been left homeless in near-freezing winter temperatures.

“The earthquake in Turkiye has led to a tragic loss of life and carries meaningful economic implications,” economist Fatih Akcelik wrote in a note to clients.

Turkiye-Syria quake toll rises above 35,000

JPMorgan also said it expected now that the central bank would cut interest rates by another 100 basis points at its meeting next week to 8%.

“The political leadership signalled further rate cuts even before the earthquake,” he said. “We do not rule out more rate cuts ahead of the elections originally scheduled for June 18. Yet, we believe that the policy rate is less relevant now as the monetary policy transmission mechanism is broken in Turkiye .”