Wealth alone won't save countries from climate change

(Reuters News, 20 Nov 2019) The global economy will contract by 3% by mid-century as the planet warms, with countries in North America faring the best and countries in Africa the worst, says a new study.

Wealth alone will not shield economies from the impact of climate change, researchers said on Wednesday, urging governments to build flood defences and early warning systems to stem financial losses.

Climate research has shown that poor people in tropical countries are most vulnerable to economic loss caused by global warming.

But countries that aggressively prepare for climate impacts like hurricanes and heatwaves will fare drastically better financially than others with similar economies, according to a report by the Economist Intelligence Unit.

For example, by 2050, Russia's economy will be 5% smaller than it would have been without the impact of climate change.

Argentina, which has done more to prepare, will only contract by 2% despite having similar levels of economic development, said the study.

"Argentinean leadership recognises that climate change represents a risk to Argentina's long-term growth rate, most obviously through its impact on the important agriculture sector," said the report.

External link

Reuters News, 20 Nov 2019: Wealth alone won't save countries from climate change