Global economic losses could reach $5 trillion if there is a “plausible increase” in extreme weather events linked to climate change that cause crop failures and food and water shortages, the US said on Wednesday. Lloyd’s insurer From London.
Lloyd’s, which carried out the study jointly with the Cambridge Center for Risk Research, emphasized that “systemic risk scenario“, which models the global economic impact of extreme weather events, is hypothetical.
However, he assured that the work would improve understanding by companies and politicians from exposure to critical threats such as extreme weather conditions.
By adjusting the estimated $5 trillion in losses over a five-year period to the likelihood of these extreme weather events, global economic losses forecasts amounted to $711 billion, according to Lloyd’s.
“The global economy is becoming increasingly complex and increasingly susceptible to systemic threats,” said Trevor Maynard, executive director of systemic risk at the Cambridge Center for Risk Research.
He said the study “will help companies and policymakers explore possible consequences these scenarios.”
Lloyd’s has modeled global economic losses from extreme weather events, assessing the impact food crisis and water in global gross domestic product over a five-year period.
The weighted average of damages across three severity levels (severe, severe and extreme) was $5 billion over five years, ranging from $3 billion in the least severe scenario to $17.6 billion in the most extreme.
Reuters
Source: Aristegui Noticias

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.