2. Infrastructure Destruction
Besides loss of life, infrastructure destruction is by far the
most obvious type of damage that comes to mind when we
think about natural disasters.
But the economic consequences are rarely considered
beyond what the cost will be to rebuild. That’s a serious
problem for the victims of natural disasters because it’s the
economic fallout that leaves some of the longest-lasting
scars.
Source:
http://goo.gl/eDkNXz
3. The Unforeseen Problem
- Business disruption
Example :
On a grand scale, that’s what happened after Hurricane Katrina ravaged
the Gulf coast back in 2005 – as companies reeled from catastrophic
losses, millions of workers in Louisiana, Texas and Mississippi
- Mass unemployment
- Cutback in consumer spending
4. The Commodity Effect and Scarcity
- Affect the commodity prices
- extra effects included diminished margins for industries - from
transportation to consumer goods.
- strikes, scarcity rules, and regular staples like food, merchandise
and even housing can become commoditized as a result
5. In the next slide, you will find a diagram
that represent the economic losses of
natural disasters since 1965 until 2010.
Note the name of the disaster and its loss.
6. The financial effects of natural disasters
Source: http://cdn.static-conomist.com/sites/default/files/20110326_WOC402.gif
7. forbes/Jonas Elmerraji. 2011. Financial Effects Of Natural
Disasters. [ONLINE] Available at:
http://www.forbes.com/sites/greatspeculations/2011/03/1
5/financial-effects-of-natural-disasters/. [Accessed 11
November 15].
Reference :