Thursday, July 31News That Matters

UN Warns Climate Shocks Could Slash 6% GDP in a Third of Asia-Pacific Countries

A new United Nations report has issued a stark warning that climate-related disasters could lead to annual economic losses of at least 6 per cent in one-third of Asia-Pacific nations, threatening to derail economic progress and deepen inequality in the region.

The Economic and Social Survey of Asia and the Pacific 2025: Understanding the Macroeconomic Implications of Climate Change, published by the UN Economic and Social Commission for Asia and the Pacific (ESCAP) on April 8, 2025, underlines the region’s acute vulnerability to climate risks and the growing struggle of developing economies to cope with its macroeconomic impacts.

Although the Asia-Pacific region accounted for 60 per cent of global economic growth in 2024, the report warns that many of its countries remain ill-prepared to deal with intensifying climate shocks. Among the 30 countries assessed, 11 were found to be particularly vulnerable: Afghanistan, Cambodia, Iran, Kazakhstan, Laos, Mongolia, Myanmar, Nepal, Tajikistan, Uzbekistan, and Viet Nam.

The study focuses on estimated average annual losses (AAL) due to climate-related hazards a measure of economic impact expressed as a share of national GDP. The findings are sobering: the region AAL stands at an average 4.8 per cent of GDP. In Cambodia nearly 11 per cent. For Fiji, Myanmar, and Pakistan, losses reach at least 7 per cent of GDP.

Cambodia high vulnerability is attributed to recurring floods and droughts that severely disrupt its agriculture sector. In Fiji, Myanmar, and Pakistan, outdated and fragile infrastructure worsens the impact of natural disasters. Viet Nam meanwhile, faces growing exposure to coastal flooding and tropical storms driven by rapid urbanisation and changing land-use patterns.

ESCAP spokesperson says “These losses are not just statistics they represent lost livelihoods, disrupted economies, and growing inequalities. Climate resilience is no longer optional it’s essential for sustainable development.”

The report also highlights a concerning gap many developing economies lack the tools, infrastructure and financial capacity to adapt to these escalating risks. It calls for urgent and proactive government intervention to facilitate the shift toward greener, more resilient, and higher-income economic sectors.

The UN urges countries in the region to capitalise on emerging opportunities in green value chains and industries from renewable energy and sustainable transport to eco-tourism and climate-smart agriculture as engines of future growth. Regional cooperation and inclusive policymaking it stresses, will be critical to closing the development divide and building resilience.

As climate risks intensify across the globe, the Asia-Pacific region stands at a tipping point. Without decisive action, the economic toll of climate change could deepen but with targeted investments and cooperation, the region has a chance to lead the transition to a more resilient and sustainable future.

From News Desk

Leave a Reply

Your email address will not be published. Required fields are marked *