Southeast Asia Faces Highest Risk of Natural Disasters, ADB Warns of Economic Growth Risks

The Asian Development Bank (ADB) report states that Asia is the region most affected by natural disasters. Between 2000 and 2021, 39% of global disasters occurred in Asia, significantly higher than in America (23%), Africa (21%), Europe (13%), and the Middle East (4%).

Within Asia, 33% of disasters occurred in Southeast Asia, 27% in East and South Asia, 5% in the Pacific, and 4% in Oceania and Central Asia.

Recorded natural disasters included droughts, earthquakes, epidemics, extreme temperatures, floods, glacial lake outburst floods, landslides, storms, volcanic activity, and wildfires. Incidents involving or caused by animals were also included.

The ADB's calculations used data from the Centre for Research on the Epidemiology of Disasters (CRED) and the EM-DAT international disaster database, processed in January 2023.

Natural Disasters and the Economy

The ADB explains that the Asia-Pacific region is at the forefront of climate change, experiencing more extreme weather events.

ADB-processed data from the World Meteorological Organization (WMO) in 2022 showed that Asia experienced its highest temperatures in 30 years, averaging 0.86°C in 2021, above the 1981-2010 average. The ADB notes that 2020 was the hottest year since 1900.

"Extreme rainfall events such as storms, floods, and landslides, which directly affected more than 48 million people and claimed 4,000 lives in 2021 in the region, are becoming more frequent," the ADB wrote in its report.

Southeast Asia, East Asia, and South Asia are the most affected regions. The Pacific is increasingly impacted by rising sea levels, as many Pacific island nations are low-lying or only a few meters above sea level.

Rising temperatures due to climate change pose significant economic risks in Asia, particularly for trade and investment.

The ADB notes that many economies in the region rely on exports and foreign direct investment (FDI) as engines of economic growth.

"The region accounted for 35% of world trade in 2020, up 10% from a decade earlier, and one-third of global FDI in 2019," said the ADB.

The ADB warns that without global efforts to mitigate and adapt to climate change, potential disruptions to transportation and production will hinder Asia's economic growth, particularly impacting trade and FDI performance.