un report warns: natural disasters cost $2.3 trillion annually
A new UN report reveals that the actual costs of natural disasters are ten times higher than previously estimated, reaching as much as $2.3 trillion annually. This poses a significant challenge for the global economy.
Key information
- The actual costs of natural disasters amount to $2.3 trillion annually.
- The UN warns about the growing impact of the climate crisis.
- North America suffered the greatest financial losses in 2023.
According to the latest UN report on disaster risk reduction (UNDRR), the true costs of natural disasters worldwide are significantly higher than previously thought. As reported by the Polish Press Agency, these costs reach as much as $2.3 trillion annually, which is more than ten times previous estimates.
UN Secretary-General António Guterres warns that these costs will rise as the climate crisis deepens. Natural disasters not only destroy infrastructure but also affect health systems, education, and employment, hindering development and increasing the debt of countries.
Previous estimates pointed to losses of around $200 billion annually, which, according to UNDRR, is only "a fraction of the actual costs." Jenty Kirsch-Wood from UNDRR emphasizes that the world "chronically underestimates the impact of disasters" on sustainable development.
According to UN data, a person born in 1990 has a 63 percent chance of experiencing a catastrophic flood, while for a child born in 2025, this probability increases to 86 percent.
Record inflation in Hungary. "The price surge was triggered by the government. Even the head of the central bank is saying it now"
Displacements and financial losses
Between 2014 and 2023, natural disasters forced nearly 240 million people to relocate, with the highest numbers in China and the Philippines. In 2023, North America suffered the greatest financial losses, amounting to $69.57 billion.
Kirsch-Wood notes that most damages can be prevented through better adaptation of financial systems and efficient use of public and private investments. This is key to reducing the impact of disasters on the global economy.
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