The Construction Sector Grows While Healing the Wounds of the Earthquake Zone

Construction Sector Growing While Healing Earthquake-Affected Regions Evaluating the second quarter 2023 growth figures released by TURKSTAT, Turkey Contractors Association (TMB) Chairman M. Erdal Eren stated, "As of the first quarter of this year, the process of healing wounds in the earthquake zone and reconstruction has translated into growth for the construction sector. The increasing demand for urban renewal in high-earthquake-risk cities, particularly Istanbul, will be supportive for our sector in the coming period." [caption id="attachment_156146" align="aligncenter"] Turkey Contractors Association (TMB) Chairman M. Erdal Eren[/caption] M. Erdal Eren, Chairman of the Turkey Contractors Association (TMB), one of Turkey's most established civil society organizations, assessed the second quarter 2023 growth figures released by the Turkish Statistical Institute as follows: "It is encouraging that Turkey's economy grew at an annual rate of 3.8 percent in the second quarter of 2023 despite all global economic challenges. However, the construction sector, which contributes significantly to employment and creates demand in over 200 sub-sectors, serving as a locomotive in the economy, achieved growth of 6.2 percent above Turkey's economic growth rate in the same period. As of the first quarter of this year, the process of healing wounds in the earthquake zone and construction reconstruction has reflected as growth in the sector. The increasing demand for urban renewal in high-earthquake-risk cities, particularly Istanbul, will be supportive for our sector in the coming period. Nevertheless, the positive outlook in the construction sector, which reached a share of 9 percent of national income in 2016, still remains far below previous years. We once again bring to the attention of the relevant authorities the need to address problems such as the skilled labor shortage we have raised regarding our sector and the high increases in input costs; and to evaluate needs such as price adjustment, contract extension and settlement options for the growth in our sector to be healthy and sustainable."