Water concerns might cost US$5.6trn by 2050.

Water concerns might cost US$5.6trn by 2050.

The professional services company GHD has released a new piece of study named "Aquanomics," in which they assess the future economic impact of water risk caused by floods, storms, and shortages across 10 different geographical areas.

It was found that a startling $5.6 trillion in US dollars could be lost by the year 2050, with more than $1.3 trillion of that amount lost within the next ten years. It is anticipated that the economies of Australia, the Philippines, and the United States will all endure declines that are among the largest on average.


Only in 2022 have heavy rains caused flooding in towns and caused disruptions in the delivery of power and water, while droughts have put the crops of farmers in jeopardy. According to the Centre for Research on the Epidemiology of Disasters, the extreme shortages, flooding, and storms that occurred around the world in 2016 were responsible for causing damages of over 224 billion US dollars.

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GHD has quantified the damage caused by greater rainfall (which, in turn, raises the chances of storms and floods) as well as longer, hotter periods of dry weather and wildfires by using a computer that was developed specifically for them. According to the findings, storms have the greatest impact on the economy (49 percent), followed by flooding (36 percent) and drying (15 percent).

The amount of loss varied from nation to country and from country to region to region based on the condition of the area's architecture, the local climate and geographic factors, the predominate industries, and the local preventative systems, along with the policies that were already in place. In the decades leading up to 2050, economists anticipated that the economies of Australia, the Philippines, and the United States would experience a yearly GDP decrease of 0.5% to 0.7% on average. On either hand, it was projected that both the United Arab Emirates and the United Kingdom have only a 0.1% impact on the GDP on an annual average basis.

As water shortages interrupts production and storms and flooding destroy infrastructure and inventory, it is anticipated that manufacturing and shipping will be the hardest-hit of the five sectors vital to the world's marketplace, with losses of USD4.2 trillion. On the other hand, GHD anticipated that all five industries – wealth management and insurance, energy and infrastructure, fast-moving consumer goods and retail, and manufacturing and distributions – would experience considerable productivity losses, which would have an effect on the millions of people who work within these industries.

According to a report by Reuters, a global gathering of specialists created a new group to explore the business of water at the 2022 World Economic Forum, which was held in Davos, Switzerland. The authority's goal is to recommend lawmakers on how to effectively achieve water resources. Tharman Shanmugaratnam, who is also the co-chair of the group, stated that it is time to "change how we control water and the climate together."

According to Shanmugaratnam, "the costs of doing so are not minor, but they are dwarfed by the costs of allowing catastrophic weather wreak devastation."


Ojike Stella

1727 Blog posts

Comments
Wisdom Nnebi 3 w

Real one

 
 
Jubilee Ohwodiasa 1 y

wow seriously

 
 
Eyitoni Omayuku 2 yrs

This is serious