Equity Investors Must Pay More Attention to Climate Change Physical Risk

May 29 08:05 2020 Print This Article

By Felix Suntheim and Jérôme Vandenbussche

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The damage from the 2011 floods in Thailand amounted to around 10 percent of Thailand’s GDP, not even considering all the indirect costs through a loss in economic activity in the country and abroad. By some estimates, the total costs of the 2018 wildfires in California were up to $350 billion, or 1.7 percent of U.S. GDP. Every year, climatic disasters cause human suffering as well as large economic and ecological damage. Over the past decade, direct damages of such disasters are estimated to add up to around US$ 1.3 trillion (or around 0.2% of world GDP) on average, per year.

Direct damage from floods, heatwaves and droughts adds up to $1.3 trillion a year, on average.

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IMF Direct

IMF direct is a blog covering the global economy and policy issues, posted by the International Monetary Fund (IMF) headquartered in Washington D.C., United States. iMFdirect posts content related to the IMF’s work in economics and finance at the global or national level, and posts currently highlight the debate over policies and responses to the biggest global recession since the Great Depression. The IMF is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

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