He advance of the climate crisiswhich is already causing an increase in extreme weather events as well as endless damage to all the planet’s ecosystems, is already causing huge economic losses around the world. On the one hand, according to several studies, climate disasters are causing direct losses that amount to billions annually. But on the other hand, these phenomena also represent a real blow to macroeconomic indicators such as gross domestic product. A new analysis led by the prestigious economist James Risingfrom the University of Delaware (USA), points out that the climate crisis is already causing a drop of at least 1.8% in global GDP.
Most of the economic losses derived from climate chaos are concentrated in countries in the global south and developing countries, a new report points out
The report, published on the eve of the start of the Dubai climate summit (COP28)estimates that last year alone the climate crisis caused losses of 1.5 billion dollars in the global economy. Virtually every country in the world reported losses resulting from, for example, extreme weather events, natural disasters or, in general, environmental damage related to the climate crisis. But, as this latest analysis points out, the majority of economic losses are registered in the countries of the global south and on process of development. This is the case, for example, in Southeast Asia and the south of the African continent, where it is estimated that the climate crisis has caused losses of between 11.2% and 14.1% of GDP.
“The world is already trillions of dollars poorer because of climate change”
“The world is already trillions of dollars poorer because of the climate change“says the economist James Rising in the conclusions of this work. “Most of these losses are concentrated in already poor countries. Current estimates point to losses in the tens of trillions of dollars, and yet, we may be falling short With respect to real impact of this planetary phenomenon”adds the specialist. In these regions of the globe it is estimated that climate chaos, in total, has caused losses of more than 20 trillion dollars in the last 30 years.
Economic impact
This is not the first time and certainly not the last that economists warn about the present and future impact of the climate crisis. Last year, for example, a study by the insurance company ‘Swiss Re’ warned about the impact of global warming on the economy. As this analysis pointed out, a extreme rise in temperatures (above three degrees on average) could cause losses of up to 18% in the global economy by 2050. If humanity manages to limit the advance of this phenomenon, as foreseen in the Paris Agreement, the losses could be limited to 4% of global GDP (although they would still be significant).
Beyond the long-term forecasts and the figures that refer to macroeconomic indicators, the climate crisis is already having a direct impact on the family economy. After a few years marked by extreme heat, the droughts and the sudden emergence of Torrential rainsclimate chaos has caused a substantial increase in the price of shopping basket.
Likewise, in Catalonia the drastic drop in rainfall has forced the launch of alternative mechanisms to obtain water and this, finally, has ended up causing an increase in the bill for this essential good. These are just some examples of the economic impact of the climate crisis and how, in the future, this phenomenon could seriously affect our pockets.