According to the report “Extreme climate events in Europe: rising economic losses can lead to greater sovereign ratings divergence,” of Scope Ratings House, lower-income countries have suffered more from severe climate events. Central and Eastern European countries such as Croatia, Romania, the Czech Republic, Bulgaria and Hungary were the most affected, with average annual economic losses from climate extremes over 1980-2019 ranging from 0.11% to 0.15% of GDP, well above the 0.07% of the European Economic Area average.
The House estimated that the cost of the extreme climate phenomena in Cyprus during the period 1980-2019 was 393 million euros. This amount constitutes 10 million euros per year or 566 euros per capital. So far these phenomena have had 1.8% cumulative loss per 2019 GDP or 0.05% yearly loss per 2019 GDP. The insured losses were 2% of the total and fatalities 9.1 per 100,000 inhabitants.
If no offset investments, the costs are expected to rise in the coming years, according to Scope, adding that the countries of South and Central Europe are the most exposed.