According to a survey by the Economist Intelligence Unit, climate change would decrease the American economy by 1.1 percent by 2050. According to the report, the same applies to the entire North American economy. The economic downside, with worsening climate conditions, will continue to be drawn by natural disasters, such as wildfires and droughts.
And the US is relatively well off. In the coming 30 years, Western Europe’s GDP growth is set to fall by 1.7 percent, second in North America.
Climate change preparedness is increased in these areas, making them more resilient. The richer and more advanced economies have it easier to address climate challenges. Nonetheless, becoming rich is just part of the agreement. It is also critical to the performance of public institutions.
Institutions must be able to adapt to the effects of climate change and enact effective policy for mitigation, to continue to be intact. The quality of public services also matters, however, being wealthy.
Thus, poor institutions can damage economic growth simultaneously and exacerbate the adverse impacts of climate change. Investments in flood protection, water storage or public infrastructure could be involved.
As a result of climate change, global GDP growth will fall by 3% by 2050, ensuring that the planet in progress will bear the brunt of bad news.
According to the EIU study, Africa is most vulnerable to adverse economic effects. Over the next 30 years, the continent’s economy will contract by 4.7%. The situation is already troublesome, since average temperatures are higher and economic growth is lower than in the US, for instance.
The top three of the least robust regions are Latin America and the Middle East. Asia-Pacific drops in the middle and due to climate change, its economies are projected to have a 2.6 percent impact.
EIU Country Analysis Director John Ferguson explained that countries, both developed and developing, need to do more on the home front to meet their goals on adaptation and mitigation to reduce economic impacts.