# Floods, other water-related disasters could cost global economy $5.6 trillion by 2050 -report Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-08-29 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Global Economy Faces $5.6 Trillion in Losses Due to Climate Meta Description: Experts warn worsening droughts, storms and floods will lead to massive losses, affecting key sectors like manufacturing, agriculture, and energy. URL: https://financedigest.com/floods-other-water-related-disasters-could-cost-global-economy-5-6-trillion-by-2050-reporthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-08-29t131455z3lynxmpei7s0gtrtroptp4climate-change-water-economics-1736815341423-compressed.jpg) By Gloria Dickie LONDON (Reuters) – Worsening droughts, storms and torrential rain in some of the world’s largest economies could cause $5.6 trillion in losses to the global economy by 2050, according to a report released on Monday. This year heavy rains have triggered floods that inundated cities in China and South Korea and disrupted water and electricity supply in India, while drought has put farmers’ harvests at risk across Europe. Such disasters are [costing economies hundreds](https://www.financedigest.com/commonenergy-mistakes-costing-homeowners-hundreds-of-pounds-each-year.html "Commonenergy mistakes costing homeowners hundreds of pounds each year") of billions of dollars. Last year’s extreme droughts, floods and storms led to [global losses of more than $224 billion](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse billion lifeline offers limited respite to global banks"), according to the Emergency Events Database maintained by the Brussels-based Centre for Research on the Epidemiology of Disasters. But as climate change fuels more intense rainfall, flooding and drought in coming decades, these [costs are set to soar](https://www.financedigest.com/amazon-other-retailers-revamp-free-shipping-as-costs-soar.html "Amazon, other retailers revamp ‘free’ shipping as costs soar"), warns the report by engineering and environmental consultancy firm GHD. [Water – when there’s too much or too little – can “be the most destructive force that a community can experience,” said Don Holland, who leads GHD’s Canadian water market](https://www.financedigest.com/distilled-advancements-on-the-technological-front-to-drive-the-fruit-infused-water-market.html "Distilled Advancements On The Technological Front To Drive The Fruit Infused Water Market") programme. GHD assessed the water [risks in seven countries representing varied economic and climatic](https://www.financedigest.com/institutional-investors-back-shell-board-lawsuit-over-climate-risk.html "Institutional investors back Shell board lawsuit over climate risk") conditions: the United States, China, Canada, the United Kingdom, the Philippines, the United Arab Emirates and Australia. Using global insurance data and scientific studies on how extreme events can affect different sectors, the team estimated the amount of losses countries [face in terms of immediate costs](https://www.financedigest.com/estonias-pro-kyiv-government-faces-election-test-amid-cost-of-living-crisis.html "Estonia’s pro-Kyiv government faces election test amid cost of living crisis") as well as to the overall economy. In the United States, the [world’s biggest economy](https://www.financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economy.html "At China’s largest trade fair, exporters worry about world economy"), losses could total $3.7 trillion by 2050, with U.S. gross domestic [product shrinking by about 0.5% each year](https://www.financedigest.com/mild-sourness-products-is-expected-to-fuel-growth-of-sour-sugar-market-in-coming-years.html "Mild Sourness Products Is Expected To Fuel Growth Of Sour Sugar Market In Coming Years") up until then. China, the world’s No. 2 economy, [faces cumulative losses of around $1.1 trillion](https://www.financedigest.com/analysis-u-s-banks-face-trillion-dollar-reverse-repo-headache.html "Analysis: U.S. banks face trillion-dollar reverse repo headache") by mid-century. Of the five business sectors most vital to the global economy, manufacturing and distribution would be [hit hardest](https://www.financedigest.com/digital-divide-hits-rural-black-americans-hardest.html "‘Digital divide’ hits rural Black Americans hardest") by disasters costing $4.2 trillion as water scarcity disrupts production while storms and floods destroy infrastructure and inventory. The agricultural sector, vulnerable to both drought and extreme rainfall, could [see $332 billion](https://www.financedigest.com/merck-sees-up-to-7-billion-in-sales-of-covid-19-drug-through-end-of-2022.html "Merck sees up to billion in sales of COVID-19 drug through end of 2022") in losses by 2050. Other sectors [facing major challenges](https://www.financedigest.com/global-economy-seen-facing-a-challenging-year-eurochambres.html "Global economy seen facing a challenging year -Eurochambres") are retail, banking and energy. At this year’s World Economic Forum in Davos, Switzerland, a [global group of experts launched a new commission to research the economics of water](https://www.financedigest.com/spacex-rocket-sends-first-global-water-survey-mission-into-orbit.html "SpaceX rocket sends first global water survey mission into orbit") that aims to advise policymakers on water management. We must “transform how we govern water and the climate together,” said commission co-chair Tharman Shanmugaratnam. The costs of doing so are not trivial, but they are dwarfed by the costs of letting [extreme weather](https://www.financedigest.com/europe-unveils-hi-tech-satellite-to-speed-up-extreme-weather-warnings.html "Europe unveils hi-tech satellite to speed up extreme weather warnings") wreak havoc. (Reporting by Gloria Dickie; Editing by Katy Daigle and Susan Fenton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---