Climate change can have a big impact on economy...
Climate change is one of the biggest problems in the world today. It not only affects the environment, but also has a profound impact on the economy. The United Nations Economic and Social Commission (UNESCAP) has stated in its recent report "Economic and Social survey Asia and the Pacific 2025" that many countries in the Asia-Pacific region are suffering huge economic losses due to climate change. Climate change is affecting the economy of India and other countries.
Economic loss of climate change
The UNESCAP report states that one-third of the countries in the Asia-Pacific region are losing at least 6% of their total economy (GDP) every year. This loss is caused by climate-related events such as floods, heat waves, droughts and storms. These natural disasters not only affect people's lives, but also weaken the country's economic condition.
When floods occur, crops are destroyed, homes and roads are damaged, and factories are shut down. This costs the country a lot of money to repair everything. Similarly, heat waves prevent people from working, which reduces production. All of these things harm the country's economy.
How is the loss measured?
UNESCAP uses a method to measure this loss, called the average annual loss (AAL). This means estimating the economic loss caused by natural disasters each year. This estimate is made by looking at the number of disasters, their intensity, and the vulnerability of the affected areas.
The report studied 30 countries, and found that on average these countries lose 4.8% of their GDP. In some countries, this loss is even higher. For example:
Cambodia: About 11% of GDP lost.
Fiji, Myanmar, and Pakistan: At least 7% of GDP lost.
This loss is huge, because this money could have been used for works like building schools, hospitals, and roads.
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