Climate change is leading to more frequent and severe disaster events, and the economic impacts are escalating. In 2022, approximately 31,000 lives were lost, and economic losses amounted to an estimated $223.8 billion due to disasters. The effects of these disasters are far-reaching, affecting agriculture, food security, and the livelihoods of millions of people.
Rising Frequency of Disasters
Over the past 50 years, the frequency of extreme disaster events has surged. In the 1970s, there were about 100 disaster events annually. In the last two decades, this number has skyrocketed to approximately 400 events per year globally.
Economic Impact of Disasters
Data from the Centre for Research on the Epidemiology of Disasters (EM-DAT) reveals that in 2022, disasters resulted in nearly 31,000 deaths and economic losses of around $223.8 billion, affecting more than 185 million people. The agriculture sector, which relies on environmental conditions and natural resources, faces significant threats from disasters, including flooding, water scarcity, drought, and more.
Agricultural Losses
Agricultural losses account for a substantial portion of the overall impact of disasters, averaging around 23% across all sectors. Notably, droughts are responsible for over 65% of losses in the agricultural sector, while floods, storms, cyclones, and volcanic activities each contribute approximately 20%.
Gradual Increase in Losses
Losses in crop and livestock production have been steadily increasing over the past three decades. The total loss from extreme events over the last 31 years amounts to approximately $3.8 trillion, averaging about $123 billion per year.
Impact on Crop and Livestock Production
Losses across major crop and livestock product groups have exhibited increasing trends. Over the past three decades, cereals have experienced an annual estimated loss of 69 million tonnes, while fruits, vegetables, and sugar crops faced losses averaging 40 million tonnes each year. Meats, dairy products, and eggs collectively suffered an estimated loss of 16 million tonnes annually.
Regional Distribution of Losses
Asia has borne the largest share of economic losses at 45%, reflecting the region’s size and population. Africa, Europe, and the Americas reported similar orders of magnitude, while Oceania experienced the lowest total losses.
Income-Based Disparities
High-income countries, lower-middle-income countries, and upper-middle-income countries reported higher losses in absolute terms. However, when losses are considered relative to agricultural value added, low-income countries experienced losses more than double those of upper-middle-income countries on average.
