UNESCAP Warns"Climate Disasters Could Slash GDP by 6% in One-Third of Asia-Pacific Countries".
International
On April 8, 2025, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) released its report titled “Economic and Social Survey of Asia and the Pacific 2025: Understanding the Macroeconomic Implications of Climate Change.” The report sheds light on the significant economic challenges faced by the Asia-Pacific region due to the adverse impacts of climate change.
- According to UNESCAP, climate disasters could result in annual economic losses of at least 6% of Gross Domestic Product (GDP) in one-third of the region's countries.
- Despite contributing 60% to global economic growth in 2024, many Asia-Pacific nations remain underprepared for the potential economic shocks induced by climate change and the transition to greener, more sustainable economies.
- The report highlights key threats to regional resilience, including slower productivity growth, high public debt risks, and increasing trade tensions, while emphasizing the critical need for governments to strike a balance between promoting economic growth and achieving sustainability amidst the growing climate-related challenges.
Main Point :- (i) The survey analyzed 30 Asia-Pacific countries and identified 11, including Afghanistan, Cambodia, Iran, Kazakhstan, Laos, Mongolia, Myanmar, Nepal, Tajikistan, Uzbekistan, and Vietnam, as particularly vulnerable to climate risks. These nations face heightened risks due to their reliance on climate-sensitive sectors such as agriculture, fossil fuels, and coastal economies.
(ii) India's Real GDP growth is projected to increase to 6.5% in 2025, up from 6.2% in 2024, with inflation expected to ease to 4.3%.
(iii) By 2026, India's GDP growth is forecast to reach 6.6%, backed by strong macroeconomic fundamentals, while inflation is anticipated to decrease further to 4%.
About United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP)
Executive Secretary : Armida Salsiah Alisjahbana
Headquarters : Bangkok, Thailand
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