GDP growth in Australia will slow down due to climate change

the head of the Reserve Bank of Australia Philip Lowe has warned of massive economic and financial implications of climate change, according to Bloomberg.

Australia, the driest continent in the world, every year, is experiencing forest fires, but this year the scale was extraordinary.

“the Economic impact is very high, said Lowe at the forum in Melbourne. — The world is getting hotter, the climate is more changeable, and we are already seeing in Australia, perhaps more than anywhere else in the world, the consequences of that.”

According to the head of the Central Bank, the drought will reduce growth in Australia’s GDP by a quarter percentage point this year, and the fires will reduce growth by 0.2 percentage points in the last quarter of 2019 and the current quarter.

“climate Change affects the nature of production in Australia, the nature of the investment, and ultimately on the nature of our exports, at the moment I think it affects the confidence of the people and thus ultimately on costs,” said Lowe.

“This affects the availability and cost of insurance, these extreme weather events, and this affects how we produce and distribute energy,” he added.

Natural disasters inflicted record economic damage over the last decade. According to insurance broker Aon in the years 2010-2019 damage from natural disasters worldwide amounted to 2.98 trillion dollars, being approximately 1.19 trillion dollars more than in the previous decade.