Climate change will make the world's economies smaller in 2050
The global economy will be reduced by 3% due to droughts, soil erosion, sea level rise and lack of infrastructure.
|Economics of Climate Change.|
Climate change will also make us poorer, the world will be poorer in 2050 due to climate change. Africa, Latin America, the Middle East and Russia take the worst part.The ability of countries to adapt to adverse situations caused by climate change will have an impact on the behavior of the world economy that will be 3% smaller in 2050, according to a study by The Economist Intelligence Unit (EIU).
The EIU created the Climate Change Resilience Index, in which it measured how the 82 largest economies in the world are prepared to face climate change.
This instrument allows to evaluate the economic impact in each country, by granting ratings on eight resilience indicators. The information collected allowed us to calculate the ability of economies to resist the consequences of global warming and other climatic events of greater incidence.
In the research, the EIU found that rich countries with high institutional quality will be better off economically in the face of the effects of climate change. In contrast in poor countries there is a greater likelihood that their economic growth will be adversely affected and that they will suffer even more from the impact of climate change.
According to the model designed by The Economist Intelligence Unit, the world economy will shrink by 3% in 2050. Africa will suffer the greatest consequences when its economy will shrink 4.7% because it is the region with the least resilience to climate change.
Climate change and Latin AmericaThe study's findings place Latin America in second place in this index, with a projection of a 3.8% reduction in its economy over the next three decades. It is followed by the Middle East (3.7%), Eastern Europe (3%) and Asia-Pacific (2.6%), North America (1.1%) and Western Europe (1.7%).
The Climate Change Resilience Index demonstrates that the richest regions seem to be more institutionally prepared to face the global variation of the climate on earth, so they could have a smaller impact on their economies.
Our index reveals the vulnerabilities that exist in developing countries in the face of the future effects of climate change. The impacts of climate change are already being felt… but the economic impacts will only grow over time, ”said John Ferguson, director of Country Analysis of the EIU.
Ferguson noted that the 3% decrease in Gross Domestic Product in 2050 is very significant for the world economy, and even warned that the economic impacts could be much worse than those indicated in the EIU model.
Better in the North, Climate change economy model.The reduction of the economy will be much smaller in North America (1.1% smaller) and in Western Europe (1.7%), since these regions show a greater capacity to recover from the effects of climate change, says the report.
John Ferguson, director of this research, explains in a statement that "a loss of 3% of real GDP in 2050 is very significant for the world economy, as there will be economic losses every year for the next three decades."
|Climate change will make the world's economies smaller.|
He adds that these effects are already being noticed with extreme weather events, but that the economic impacts will only grow over time, since natural disasters, such as forest fires and droughts, among others, will continue to be a drag on the world economy as weather conditions worsen.
Consequently, the world will be poorer in 2050 due to the impacts of climate change, the report concludes, which has used a new Climate Change Resilience Index to determine the 82 largest economies in the world that will be most affected by warming global.
Being poor in a climate crisis is much worse.At the country level, the report notes that the poorest countries with the highest average temperatures are most likely to be the most affected by climate change.
|Climate change will make the world's economies smaller, worse in poor countries.|
He adds that the report only indicates trends, but warns that if any of the potentially most affected countries take appropriate measures, the impact forecast can be corrected.
The important thing is to undertake a coordinated global effort to face the impact of the climate crisis, says Ferguson in statements to the AFP.