Climate change: Growing economic losses, with the United States and the Philippines at the forefront

The Swiss Re Institute reveals that climate-related economic losses are expected to increase, with the Philippines and the United States the most affected countries. Currently, four climate disasters - floods, tropical cyclones, winter storms in Europe and severe thunderstorms - generate global economic losses estimated at USD 200 billion per year.

In the United States, these phenomena result in an economic loss equivalent to nearly 0.4% of GDP (USD 97 billion), while the Philippines suffers a loss amounting to 3% of its GDP (USD 12 billion). These two nations are also at high risk of seeing these dangers intensify with climate change.

The Swiss Re Institute study ranks 36 countries according to their vulnerability to increased material losses due to weather hazards exacerbated by climate change. Fast-growing Asian economies, such as Thailand, China, India and the Philippines, are considered particularly vulnerable.

Tropical cyclones are identified as the main drivers of economic losses in the United States, as well as East and Southeast Asia. Reducing the potential for losses through adaptation measures, such as strengthening building standards or improving flood protection, is seen as a key step in limiting future damage.