Excessive rainfall is triggering disastrous consequences for our economy. The socio-economic deterioration and loss in our lives, communities and nationhood is rapidly increasing as a result. For decades, many have debated how climate change and conditions have influenced the qualities of societies and the overall functioning of economies. Research has brought to light key connections in cohabitation between these complex systems of human and the natural. Demonstrating profound effects of climate change on economics, health, conflict, migration and agriculture.
Recent studies have shown that in July 2021, record-breaking rainfall brought severe floods to Europe, where 200,000 properties lost electrical power. In the same month, torrential rain with a maximum intensity of 201.9 millimetres within an hour led to catastrophic floods In Henan province, China. Many had to relocate as a result. Such devastating losses like this one cause billions of pounds to be lost creating a directly negative impact on the economy. The question remains how do rainy days affect the macro-economics in the long term?
Kotz et al. published a report that presented an assessment of changes in gross regional product relating to excessive precipitation. He found that an increase in rainy days and extreme precipitation resulted in a worldwide decline in macro-economic productivity. Noticeably, wealthy countries were hit hardest by these growing rates than low-income countries, this is unusual compared to the prevalent hypothesis that low-income countries don’t have the resources or funding to help diminish catastrophe, it seems high income countries felt the same effects however, their economies suffered worse as the countries manufacturing and service are sensitive to daily deluges. There is also a clear loss of productivity as significant storms preclude many workers from being able to report to their jobs and that can create declines in revenue for the duration of the unpredictability for longer than anticipated at times. What’s more, consumer activity sees a decline also as the extreme weather events make most people not want to leave their homes.
It is no surprise that the agricultural sector is vulnerable to extreme precipitation and natural disasters. Land drainage could be another factor that further complicates the repercussions of excessive rain. Extreme rainfall can also spark world economic changes through the globalisation of trade as a natural disaster in one area has knock on effects to the economy of another, if they are of course interdependent and rely on each other. This global issue has only seen growth in recent years as the frequency and intensity of extreme rainfalls have been increasing. Set to continue with the likes of global warming. A higher number of rainy days and more extreme daily precipitation does in fact deflate the economic production worldwide.
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