- Name
- Direct economic loss attributed to disasters in relation to global gross domestic product (GDP)
- Indicator purpose
- This indicator measures direct economic loss from disasters in relation to global GDP to track progress toward SDG 1.5: "By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social, and environmental shocks and disasters." It provides crucial data on disasters' financial impact on the global economy, helping to understand these losses in relation to overall global economic output. Monitoring this indicator enables policymakers, stakeholders, and organizations to make informed decisions to promote sustainable development, address disaster-related economic impacts, enhance disaster risk reduction, and improve economic resilience at national and global levels. It ensures that vulnerable populations, such as low-income communities, marginalized groups, and disaster-prone regions, are included in sustainable development and disaster resilience efforts, contributing to sustainable, inclusive, and equitable growth.
- Abstract
- This indicator measures the direct economic loss attributed to disasters in relation to global gross domestic product (GDP) to monitor progress towards SDG 1.5, ‘By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social, and environmental shocks and disasters’. It is defined as the ratio of direct economic loss attributed to disasters in relation to GDP. The relevance of this indicator lies in its ability to provide critical data on the financial impact of disasters on the global economy which is essential for understanding disaster risk reduction and management. The data for this indicator is collected through administrative reports, and it is calculated by the sum of direct agricultural loss, direct economic loss to all other damaged or destroyed productive assets, direct economic loss in the housing sector, direct economic loss resulting from damaged or destroyed critical infrastructure, direct economic loss to cultural heritage damaged or destroyed, all attributed to disasters, divided by the global GDP. By tracking this indicator, stakeholders can gain valuable insights into disaster impact assessment and economic resilience, enabling them to make informed decisions to promote sustainable development and address the economic impacts of disasters, enhance disaster risk reduction efforts, and improve economic resilience at both national and global levels.
- Unit of measure
- Ratio: direct economic loss attributed to disasters of global GDP.
- Other characteristics
- - Indicator definition - This indicator measures the ratio of direct economic loss attributed to disasters in relation to GDP.
Economic Loss: Total economic impact that consists of direct economic loss and indirect economic loss.
Direct economic loss: the monetary value of total or partial destruction of physical assets existing in the affected area. Direct economic loss is nearly equivalent to physical damage.
Indirect economic loss: a decline in economic value added as a consequence of direct economic loss and/or human and environmental impacts.
- Geographical coverage: National
- Data collection method: Administrative reports.
- Data availability: For the years 2010, 2016, 2021, and 2022
- Classification used
- N/A
- Disaggregation
- Direct economic loss resulting from damaged or destroyed critical infrastructure attributed to disasters. (Infrastructure)
Direct economic loss resulting from damaged or destruction to entities that provide essential services to the public. (Public Utilities)
- Key statistical concepts
- The indicator is calculated by the sum of direct agricultural loss, direct economic loss to all other damaged or destroyed productive assets, direct economic loss in the housing sector, direct economic loss resulting from damaged or destroyed critical infrastructure, direct economic loss to cultural heritage damaged or destroyed, all attributed to disasters, divided by the global GDP.
- Recommended uses
- - Policy Development: Use the data to inform and shape policies related to disaster risk reduction, economic resilience, and sustainable development, ensuring that they are evidence-based and targeted towards addressing the specific challenges identified by the indicator.
- Program Planning and Implementation: Design and implement programs to improve disaster preparedness, response, and recovery, as well as to enhance economic resilience and reduce the impact of disasters on infrastructure, public utilities, and other productive assets.
- Monitoring and Evaluation: Track progress towards SDG Target 1.5 and evaluate the effectiveness of initiatives aimed at reducing direct economic losses attributed to disasters.
- International Comparisons: Compare progress in disaster risk reduction and economic resilience across countries, using the data to identify best practices, lessons learned, and areas needing improvement on a global scale.
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- Other comments
- All international metadata can be extracted from https://unstats.un.org/sdgs/metadata/.
- Target 2030
- 5. By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters
