News - Global damage from natural disasters totals $200 billion

Global economic damage from floods, tropical cyclones, blizzards, and hurricanes can reach $200 billion annually. This assessment was published on Wednesday by researchers at the Re Institute, an analytical unit of the Swiss reinsurance company Swiss Re. Based on data from 2022, the authors of the report analyzed the potential economic consequences of the abovementioned four types of natural disasters for 36 countries, and they concluded that they are the most serious for the Philippines where annual losses could amount to 3 percent of the country's GDP. Compared to the size of the country's economy, the United States is in second place, at the level of 0.38 percent of the GDP, in terms of the amount of potential damages from natural disasters. Thailand, Austria, and China come next. In terms of absolute indicators, the greatest economic loss from natural disasters is likely for the United States. It is estimated at $97 billion a year. “Climate change is leading to a rise in severe weather events and is therefore becoming an ever-greater burden on the economy,” said Swiss Re chief economist Jerome Jean Haegeli. Not only the damage caused to the insured property, but the entire amount of the damage was taken into account when assessing it. The consequences of only four natural disasters were considered at the same time. According to Swiss Re Institute experts, due to climate change, the amount of damage caused by natural phenomena may increase in the future.