In 2024, the economic losses due to natural disasters worldwide amounted to about 368 billion U.S. dollars. Natural disasters occur as a result of natural processes on Earth. Many different types of natural disasters can occur, including floods, hurricanes, earthquakes, and tsunamis. Natural disasters in 2024 Tropical cyclones generated the highest amount of economic losses in 2024 with 145 billion U.S. dollars worldwide. Hurricanes Helene and Milton were the most destructive events worldwide that year with over a hundred billion U.S. dollars in economic losses. Flooding events ranked second in the costliest events in 2024, with flooding in Valencia, Spain, and South and Central China being the worst examples. Asia hardest hit by natural disasters A highly destructive force, Asia is one of the most susceptible regions to natural disasters. The repercussions of natural disasters are not only physical, but also economic. Costs may be high – depending on the severity – as areas affected by natural disasters might need to be rebuilt. Lower income countries are more likely to be affected by natural disasters for a multitude of reasons, including a lack of developed infrastructure, inadequate housing, and lack of back-resources.

In 2024, the global economic loss caused by tropical cyclones amounted to 145 billion U.S. dollars, more than any other type of natural disaster that year. Flooding followed in second, at 84 billion U.S. dollars. That same year, the total economic loss from all natural disasters globally reached 368 billion U.S. dollars.

The earthquake and subsequent tsunami in Japan in 2011 was the costliest natural disaster since 1900, with losses reaching 235 billion U.S. dollars. The tsunami hit the nuclear plant at Fukushima, causing a nuclear disaster in the area. Hurricane Katrina, which hit the Gulf Coast of the United States in 2005, and Hurricane Harvey, which hit the North American country in 2017, tied with the second-largest economic losses in the period, each with 125 billion U.S. dollars.

In 2023, there was a global protection gap of *** U.S. dollars for natural disasters worldwide. The estimated economic loss of natural disasters worldwide was *** billion U.S. dollars, while the estimated insured loss amounted to *** billion U.S. dollars.Where did the most costly natural disaster occur?Natural disasters are extreme, sudden catastrophes that are caused by natural processes by the earth. Different types of natural disasters include floods, hurricanes, tornadoes, earthquakes, and tsunamis. There are many consequences that occur as a result of natural disasters, which include death, economic and infrastructural damage, and public health issues. The 2011 earthquake and tsunami that happened in Japan caused the most economic damage worldwide in the past four decades. Most costly disasters for insurersThe impact of natural disasters on insurance companies varies depends on the prevalence of insurance coverage in the affected region. Generally, losses from natural disasters that occur in wealthy countries such as the United States include a greater percentage of insured losses than disasters that occur in lower income countries. 2017 remains the worst year for insured property losses in the United States due to several major hurricanes in the U.S. and the Caribbean. Domestically, Hurricane Katrina was the most expensive natural disaster of all time.

About 1.7 thousand natural disasters in Africa have been reported between 1970 and 2019, causing economic losses of around 38.5 billion U.S. dollars. Floods and storms had the highest economic impact. Storms caused 37 percent of the total reported economic losses, while floods were responsible for 34 percent of them. Africa is particularly vulnerable to climate change compared to other regions of the world. A large share of the population lives below the poverty line and its livelihood depends on activities extremely sensitive to climate changes and weather conditions.

In 2024, the economic losses caused by natural disaster events in the Americas (excluding the United States) amounted to some 25 billion U.S. dollars, nearly half the losses reported the previous year. The economic losses associated with widespread flooding in the southern region of Brazil that year totaled roughly 1.4 billion U.S. dollars.

Economic losses from natural disasters vary by countries, and it has been hypothesized that institutional, political, and other national conditions and policies all play a role in determining the severity of loss. Many empirical studies for understanding the determinants of disaster losses, however, suffer from endogeneity and selection bias, which can potentially make their results method-dependent. To demonstrate, we investigate the relationship between disaster propensity, wealth, and economic loss from a panel data collected by [Neumayer et al., 2014]. We first demonstrate that the original data is subject to endogeneity and selection bias, reconstruct the dataset, and apply Heckman correction. The bias-corrected estimated impact of disaster propensity changes direction from the original result by [Neumayer et al., 2014] — countries that experience more frequent disasters tend to suffer from greater economic damage, holding everything else equal. We suggest that disaster propensity could be an indicator of vulnerability, or a sign of insufficient prevention and mitigation measures. Although we cannot provide any definitive explanation for the phenomenon, our result shows that correcting selection bias matters when dealing with natural disasters data. For future work, a more sophisticated construction of the latent propensity variable and the application of quantile regression for endogenous selection models could broaden our understanding.

Of the total economic losses as a result of natural disasters worldwide in 2023, 44 percent came from losses in the Americas. This is despite the fact that only 12 percent of the people affected by natural disasters that year were living in the continent. Asia followed in second, with 37.5 percent of economic losses.

In 2024, Hurricane Helene was by far the most significant natural disaster in the United States in terms of economic loss, with expenses totaling 75 billion U.S. dollars. That year, the overall total of economic losses from natural disasters across the United States was estimated at around 368 billion U.S. dollars.

Economic damage from natural hazards can sometimes be prevented and always mitigated. However, private individuals tend to underinvest in such measures due to problems of collective action, information asymmetry and myopic behavior. Governments, which can in principle correct these market failures, themselves face incentives to underinvest in costly disaster prevention policies and damage mitigation regulations. Yet, disaster damage varies greatly across countries. We argue that rational actors will invest more in trying to prevent and mitigate damage the larger a country’s propensity to experience frequent and strong natural hazards. Accordingly, economic loss from an actually occurring disaster will be smaller the larger a country’s disaster propensity – holding everything else equal, such as hazard magnitude, the country’s total wealth and per capita income. At the same time, damage is not entirely preventable and smaller losses tend to be random. Disaster propensity will therefore have a larger marginal effect on larger predicted damages than on smaller ones. We employ quantile regression analysis in a global sample to test these predictions, focusing on the three disaster types causing the vast majority of damage worldwide: earthquakes, floods and tropical cyclones.

A drought in South Africa in 1990 incurred an economic loss of about 1.96 billion U.S. dollars. Storm Idai, in Mozambique in 2019, also had an economic impact of 1.96 billion U.S. dollars. These two events resulted in the largest economic losses from climate disasters recorded in Africa between 1970 and 2019.

Drought risk in Africa

Droughts have caused an enormous number of human losses. The deadliest natural events in Africa are droughts and caused thousands of fatalities, especially in the 1970s and 1980s in the Horn of Africa and Eastern Africa. Many countries with the highest risk of droughts are in Africa. In 2020, Somalia was the most endangered country in the world. Among the ten countries most at risk of droughts, eight were African.

Economic impact of droughts

Between 1970 and 2019, droughts have impacted heavily the economies of various African countries, including Zimbabwe, Ethiopia, Namibia, and South Africa. During the last decades, droughts cost Zimbabwe 0.14 percent of the country's GDP. Five of the 10 most expensive weather, climate, and water -related disasters in Africa over the last decades were droughts.

Natural Disaster Insurance Market Outlook

The global natural disaster insurance market size was valued at approximately USD 90 billion in 2023 and is projected to reach USD 145 billion by 2032, growing at a CAGR of 5.5% over the forecast period. This growth trajectory underscores the increasing awareness and need for financial protection against the catastrophic losses caused by natural disasters. As climate change intensifies the frequency and severity of such events, the demand for insurance solutions that can mitigate economic risks is rising. This burgeoning market is bolstered by advancements in technology, government policies promoting insurance uptake, and a growing recognition of the importance of risk management strategies among businesses and individuals alike.

One of the primary growth drivers of the natural disaster insurance market is the escalating incidence and severity of natural calamities. Climate change has undeniably increased the frequency of disasters such as hurricanes, floods, wildfires, and earthquakes, leading to unprecedented economic damages. These events have heightened awareness among individuals and organizations about the catastrophic financial impacts of such occurrences, driving the demand for comprehensive insurance coverages. Moreover, the integration of advanced predictive analytics and risk assessment technologies is enabling insurers to offer more tailored and accurate insurance products. This technological evolution not only increases the efficiency of insurance underwriting but also enhances customer satisfaction by providing more personalized solutions.

Government initiatives and policies also play a crucial role in the expansion of the natural disaster insurance market. Many governments worldwide are implementing mandatory insurance policies and providing subsidies to encourage the uptake of disaster insurance. Such initiatives are pivotal in markets where insurance penetration is traditionally low, ensuring that even vulnerable populations have access to financial protection. Additionally, collaborations between public and private sectors are fostering innovative insurance products that are more accessible and affordable, further fueling market growth. In regions prone to specific disasters, governments are also partnering with international organizations to develop risk pooling mechanisms, which help distribute risk and make insurance more viable.

The growing participation of the private sector in offering disaster insurance coverages is another significant factor contributing to market growth. There is an increasing trend among businesses to include disaster risk management as a core component of their strategic plans. Corporations are investing in insurance products to safeguard their assets against potential losses due to natural catastrophes, ensuring business continuity. Insurers, in response, are developing innovative products that cater specifically to the unique needs of various industries, enhancing their market share. This trend is particularly prevalent in sectors such as agriculture, real estate, and infrastructure, which are highly susceptible to natural disasters.

Regionally, North America is expected to lead the natural disaster insurance market due to its high insurance penetration and frequent exposure to natural calamities. The Asia Pacific region is also anticipated to witness substantial growth, driven by rapid urbanization, economic development, and increased vulnerability to extreme weather events. Europe follows closely, benefitting from stringent regulations mandating disaster insurance coverage. Conversely, the Middle East & Africa and Latin America, while experiencing slower growth rates, are gradually increasing their market presence through governmental reforms and international partnerships aimed at enhancing insurance accessibility.

Coverage Type Analysis

Within the natural disaster insurance market, coverage types play a pivotal role in defining the range and scope of protection offered to policyholders. Property insurance remains one of the most sought-after coverage types, primarily because of its direct correlation with asset protection. As real estate and infrastructure investments grow, so too does the need for robust property insurance solutions that can safeguard these investments against natural calamities. This segment is witnessing significant innovations, with insurers offering comprehensive packages that cover a wide array of risks, from floods and earthquakes to hurricanes and wildfires. Insurers are leveraging data analytics and geographic information systems (GIS) to assess risk levels accurately, thus enhancing

In 2024, the direct economic loss that resulted from natural disasters in China was about 401 billion yuan. That year, around 10.09 million hectares of agricultural land were affected by natural disasters in China.

Analysis of ‘Natural Disasters Data Explorer’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://www.kaggle.com/mathurinache/natural-disasters-data-explorer on 28 January 2022.

--- Dataset description provided by original source is as follows ---

Context

Disasters include all geophysical, meteorological and climate events including earthquakes, volcanic activity, landslides, drought, wildfires, storms, and flooding. Decadal figures are measured as the annual average over the subsequent ten-year period.

Content

Thanks to Our World in Data, you can explore death from natural disasters by country and by date.

Acknowledgements

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Inspiration

List of variables for inspiration: Number of deaths from drought Number of people injured from drought Number of people affected from drought Number of people left homeless from drought Number of total people affected by drought Reconstruction costs from drought Insured damages against drought Total economic damages from drought Death rates from drought Injury rates from drought Number of people affected by drought per 100,000 Homelessness rate from drought Total number of people affected by drought per 100,000 Number of deaths from earthquakes Number of people injured from earthquakes Number of people affected by earthquakes Number of people left homeless from earthquakes Number of total people affected by earthquakes Reconstruction costs from earthquakes Insured damages against earthquakes Total economic damages from earthquakes Death rates from earthquakes Injury rates from earthquakes Number of people affected by earthquakes per 100,000 Homelessness rate from earthquakes Total number of people affected by earthquakes per 100,000 Number of deaths from disasters Number of people injured from disasters Number of people affected by disasters Number of people left homeless from disasters Number of total people affected by disasters Reconstruction costs from disasters Insured damages against disasters Total economic damages from disasters Death rates from disasters Injury rates from disasters Number of people affected by disasters per 100,000 Homelessness rate from disasters Total number of people affected by disasters per 100,000 Number of deaths from volcanic activity Number of people injured from volcanic activity Number of people affected by volcanic activity Number of people left homeless from volcanic activity Number of total people affected by volcanic activity Reconstruction costs from volcanic activity Insured damages against volcanic activity Total economic damages from volcanic activity Death rates from volcanic activity Injury rates from volcanic activity Number of people affected by volcanic activity per 100,000 Homelessness rate from volcanic activity Total number of people affected by volcanic activity per 100,000 Number of deaths from floods Number of people injured from floods Number of people affected by floods Number of people left homeless from floods Number of total people affected by floods Reconstruction costs from floods Insured damages against floods Total economic damages from floods Death rates from floods Injury rates from floods Number of people affected by floods per 100,000 Homelessness rate from floods Total number of people affected by floods per 100,000 Number of deaths from mass movements Number of people injured from mass movements Number of people affected by mass movements Number of people left homeless from mass movements Number of total people affected by mass movements Reconstruction costs from mass movements Insured damages against mass movements Total economic damages from mass movements Death rates from mass movements Injury rates from mass movements Number of people affected by mass movements per 100,000 Homelessness rate from mass movements Total number of people affected by mass movements per 100,000 Number of deaths from storms Number of people injured from storms Number of people affected by storms Number of people left homeless from storms Number of total people affected by storms Reconstruction costs from storms Insured damages against storms Total economic damages from storms Death rates from storms Injury rates from storms Number of people affected by storms per 100,000 Homelessness rate from storms Total number of people affected by storms per 100,000 Number of deaths from landslides Number of people injured from landslides Number of people affected by landslides Number of people left homeless from landslides Number of total people affected by landslides Reconstruction costs from landslides Insured damages against landslides Total economic damages from landslides Death rates from landslides Injury rates from landslides Number of people affected by landslides per 100,000 Homelessness rate from landslides Total number of people affected by landslides per 100,000 Number of deaths from fog Number of people injured from fog Number of people affected by fog Number of people left homeless from fog Number of total people affected by fog Reconstruction costs from fog Insured damages against fog Total economic damages from fog Death rates from fog Injury rates from fog Number of people affected by fog per 100,000 Homelessness rate from fog Total number of people affected by fog per 100,000 Number of deaths from wildfires Number of people injured from wildfires Number of people affected by wildfires Number of people left homeless from wildfires Number of total people affected by wildfires Reconstruction costs from wildfires Insured damages against wildfires Total economic damages from wildfires Death rates from wildfires Injury rates from wildfires Number of people affected by wildfires per 100,000 Homelessness rate from wildfires Total number of people affected by wildfires per 100,000 Number of deaths from extreme temperatures Number of people injured from extreme temperatures Number of people affected by extreme temperatures Number of people left homeless from extreme temperatures Number of total people affected by extreme temperatures Reconstruction costs from extreme temperatures Insured damages against extreme temperatures Total economic damages from extreme temperatures Death rates from extreme temperatures Injury rates from extreme temperatures Number of people affected by extreme temperatures per 100,000 Homelessness rate from extreme temperatures Total number of people affected by extreme temperatures per 100,000 Number of deaths from glacial lake outbursts Number of people injured from glacial lake outbursts Number of people affected by glacial lake outbursts Number of people left homeless from glacial lake outbursts Number of total people affected by glacial lake outbursts Reconstruction costs from glacial lake outbursts Insured damages against glacial lake outbursts Total economic damages from glacial lake outbursts Death rates from glacial lake outbursts Injury rates from glacial lake outbursts Number of people affected by glacial lake outbursts per 100,000 Homelessness rate from glacial lake outbursts Total number of people affected by glacial lake outbursts per 100,000 Total economic damages from disasters as a share of GDP Total economic damages from drought as a share of GDP Total economic damages from earthquakes as a share of GDP Total economic damages from extreme temperatures as a share of GDP Total economic damages from floods as a share of GDP Total economic damages from landslides as a share of GDP Total economic damages from mass movements as a share of GDP Total economic damages from storms as a share of GDP Total economic damages from volcanic activity as a share of GDP Total economic damages from volcanic activity as a share of GDP Entity Year deaths_rate_per_100k_storm injured_rate_per_100k_storm total_affected_rate_per_100k_all_disasters

--- Original source retains full ownership of the source dataset ---

Catastrophe Insurance Market Outlook

The global catastrophe insurance market is poised for substantial growth, with a market size of USD 101.2 billion projected in 2023 and forecasted to reach approximately USD 185.3 billion by 2032, driven by a compound annual growth rate (CAGR) of 6.8% during the forecast period. This robust growth is primarily attributed to the increasing frequency and severity of natural disasters, coupled with rising awareness about the importance of risk management and financial protection against such catastrophic events. The market is also benefiting from advancements in technology and data analytics, which are enabling insurers to better assess risks and offer more comprehensive and tailored insurance solutions to meet the evolving needs of consumers and businesses alike.

One of the key growth factors driving the catastrophe insurance market is the heightened awareness and understanding of the financial implications of natural and man-made disasters. The increasing occurrence of catastrophic events such as hurricanes, earthquakes, floods, and wildfires has led to significant economic losses worldwide. Governments and businesses alike are recognizing the need for adequate insurance coverage to mitigate these financial risks. Moreover, the rising urbanization and demographic shifts are contributing to greater exposure to disaster-prone areas, further emphasizing the necessity of catastrophe insurance. The growing emphasis on building resilience against climate change impacts is also spurring demand for such insurance products, as stakeholders seek to fortify their financial standing in the face of potential disruptions.

Technological advancements are playing a crucial role in the expansion of the catastrophe insurance market. The incorporation of big data analytics, artificial intelligence, and machine learning into risk assessment and underwriting processes is enhancing insurers' ability to predict and manage risks more effectively. These technologies are enabling the development of more accurate risk models and the identification of emerging risk patterns, thereby facilitating more informed decision-making and pricing strategies. Additionally, the implementation of blockchain technology in claims processing is streamlining operations and improving customer satisfaction by reducing processing times and enhancing transparency. The integration of these technological innovations is not only boosting operational efficiency but also encouraging the development of more innovative and customized insurance products.

Another significant factor contributing to market growth is the increasing collaboration between governments and insurance companies to enhance disaster preparedness and response capabilities. Public-private partnerships are being formed to promote the penetration of catastrophe insurance, particularly in developing regions where insurance coverage is often limited. Governments are also incentivizing the adoption of insurance through regulatory measures and subsidies, which is fostering market expansion. Furthermore, international organizations and development agencies are actively supporting initiatives aimed at increasing access to affordable catastrophe insurance, particularly for vulnerable populations, thereby contributing to market growth. These collaborations are crucial for building a more resilient global economy and reducing the financial burden of disasters on individuals and communities.

Reinsurance Carriers play a pivotal role in the catastrophe insurance market by providing essential support to primary insurers in managing large-scale risks associated with natural and man-made disasters. These carriers offer a financial safety net that allows insurers to underwrite policies with higher limits and broader coverage, thereby enhancing their capacity to absorb significant losses. By spreading risk across a global network, reinsurance carriers help stabilize the insurance market, ensuring that primary insurers remain solvent and capable of fulfilling their obligations to policyholders. This collaboration is crucial, particularly in the face of increasing frequency and severity of catastrophic events, as it enables insurers to maintain competitive pricing and offer innovative products that meet the evolving needs of consumers and businesses.

The regional outlook for the catastrophe insurance market indicates significant growth potential across various geographies. North America, with its advanced insurance infrastructure and high incidence of natural disasters, is expected to mainta

This report moves beyond asset and production losses and focuses instead on how natural disasters affect people’s well-being. Here, natural disaster risk and losses are measured using a metric that can capture their overall effects on poor and nonpoor people, even if the economic losses of poor people are small in absolute terms. This metric can be used in the analysis of disaster risk management projects so that investments improve the well-being of all people and are not systematically driven toward wealthier areas and individuals. And this report proposes and uses a consistent framework to assess traditional approaches to reducing disaster risk (such as building dikes or reinforcing building regulations) and strengthening resilience (such as adopting adaptive social safety nets) to help design consistent risk management policies. By examining well-being instead of asset losses, this report provides a deeper (and grimmer) view of natural disasters than does the usual reporting—indeed, this view takes better account of poor people’s vulnerability. This analysis also identifies opportunities for action and policy priorities at the country level.

Natural Catastrophes Insurance Market Outlook

The global natural catastrophes insurance market size was valued at approximately USD 75 billion in 2023 and is projected to reach around USD 140 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.2% during the forecast period. This growth is driven by the increasing frequency and severity of natural disasters, coupled with expanding awareness about the necessity of safeguarding assets against such events.

The rising incidence of natural disasters, such as earthquakes, floods, hurricanes, and tornadoes, has significantly heightened the demand for natural catastrophes insurance. Climate change has been a major contributing factor to the increased frequency and intensity of these events, prompting individuals, businesses, and governments to recognize the critical need for insurance coverage. Furthermore, advancements in risk modeling and analytics have enabled insurers to better assess and price risks, making insurance products more accessible and tailored to specific needs.

Another driving factor is the growing urbanization and industrialization across developing regions. As more people and businesses move into urban areas, the concentration of assets and infrastructure in these locations increases the potential for significant economic losses in the event of a natural disaster. This urban concentration necessitates comprehensive insurance solutions to mitigate financial risks. Moreover, governments in many countries are implementing regulations and policies that encourage or mandate insurance coverage for natural catastrophes, further boosting market growth.

Technological advancements are also playing a crucial role in the expansion of the natural catastrophes insurance market. Innovations such as satellite imagery, drones, and geographic information systems (GIS) are enhancing the accuracy and efficiency of risk assessment and claims processing. Insurers are leveraging these technologies to offer more precise and customized coverage options. Additionally, digital platforms and online distribution channels are making it easier for consumers to access and purchase insurance products, thereby increasing market penetration.

Reinsurance plays a pivotal role in the natural catastrophes insurance market by providing a safety net for primary insurers. As the frequency and severity of natural disasters increase, insurers face heightened risks and potential financial strain. Reinsurance allows these insurers to transfer a portion of their risk portfolios to larger entities, thereby stabilizing their operations and ensuring they can meet claims obligations. This mechanism not only enhances the financial resilience of insurance companies but also promotes market stability. By sharing the risks associated with catastrophic events, reinsurance helps to maintain the affordability and availability of insurance products for consumers and businesses alike.

The regional outlook for the natural catastrophes insurance market indicates significant variations in market dynamics across different geographies. North America and Europe are expected to dominate the market, owing to their high exposure to natural disasters and well-established insurance sectors. However, the Asia Pacific region is anticipated to exhibit the fastest growth, driven by rapid urbanization, economic development, and increasing awareness about disaster risk management. Latin America and the Middle East & Africa are also likely to witness substantial growth, albeit at a slower pace, as these regions work to enhance their disaster resilience and insurance infrastructure.

Coverage Type Analysis

The natural catastrophes insurance market is segmented into several coverage types, including property insurance, casualty insurance, specialty insurance, and others. Property insurance is a primary segment, covering damages to buildings, personal property, and land caused by natural disasters. This segment is expected to see robust growth due to the rising value of insured properties and the increasing incidence of property damage from natural events. Insurers are continually developing new products and services to better protect homeowners and businesses, which is further fueling the demand for property insurance.

Casualty insurance, which covers liabilities arising from injuries or damages to other people or property, is another significant segment. This type of insurance is essential for businesses and in

In 2024, tropical cyclones caused the most damage in the United States. Such a type of storm, for instance, resulted in overall losses of ***** billion U.S. dollars. Meanwhile, wildfires, droughts, and heatwaves resulted in economic losses of $ **** billion U.S. dollars. Severe convective storms were the second most destructive natural disaster that year, with a loss of almost **** billion U.S. dollars. Impact of severe thunderstorms in the U.S. Severe thunderstorms pose a great risk to public safety and often result in fatalities. People can be harmed in many ways during a thunderstorm, such as being directly struck by lightning or hurt when a building collapses/tree falls. In 2019, ** people were killed as a result of severe thunderstorms. Lightning strikes alone caused ** deaths and *** injuries in that year. How much was paid out due to thunderstorms? The high risk of damage posed by thunderstorms means that insurance cover is an important tool in reducing the losses incurred. In 2020 alone, approximately ****** homeowner insurance claims were paid due to lightning losses.

Environmental shocks in the form of natural disasters are well known for their impact on domestic economies. Less known, however, is their impact on the global economy. The scant existing literature suggests that macro-economic impacts manifest in observed empirical decreases in international trade. The literature, however, does not examine whether the impact of natural disasters on trade varies for trading partners with differing levels of market integration. This paper examines if preferential liberalization serves to protect or buffer against the negative economic consequences of natural disasters. I show that deep preferential liberalization can not only protect countries against the negative macro-economic impact of natural disasters but can actually allow countries to increase exports during natural disaster events that otherwise induce trade decline. These findings suggest that by allowing countries to expand the quantity and the range of exports, preferential trade agreements lead to enhanced resilience against exogenous shocks.

Between 1970 and 2019, droughts cost Zimbabwe 0.14 percent of the country's GDP. Five of the 10 most expensive weather, climate, and water related disasters in Africa over the last decades were droughts. In 1990, a drought in South Africa resulted to be one of the two most expensive natural disasters of the last decades. Droughts are also the natural disaster that caused the highest number of deaths in Africa, much more than floods and landslides.