How climate change can impact the global economy

Climate change could shave off up to 18% of global GDP by 2050 if temperatures rise worldwide by 3.2°C, according to the Swiss Re Institute, a Switzerland-based reinsurance company.

According to another research published by the World Economic Forum, climate change could cause the international economy to lose a tenth of its entire economic value by 2050.

The Swiss Re Institute’s report reveals that climate change will affect the Asian economies the most, with their GDP being impacted adversely by 5.5% in the best-case scenario and 26.5% in the worst-case scenario.

China risks losing close to 24% of its GDP in the worst-case scenario against Canada, the US, and the UK, which would lose 10% of their GDP, while Europe would lose 11%.

The report added that, on the other hand, the Middle East and Africa would see their GDP fall by 4.7% if the temperature increases by 2°C and 27.6°C in the worst-case scenario.

Source: weforum.org