: GDP may temporarily rise due to massive spending on recovery and rebuilding efforts.
: Developing countries often face more severe output declines (average losses of 2.1 to 3.7 percentage points) due to lower resource mobilization capacity and limited insurance markets. the impact of natural disasters on economic growth
Short-term economic data can be misleading immediately following a disaster: : GDP may temporarily rise due to massive
Research identifies several long-term scenarios for an economy after a major shock: the impact of natural disasters on economic growth
: Economies often return to previous growth trends, but the absolute level of GDP remains lower than it would have been without the disaster.
Data highlights several factors that reduce the negative impact on growth:
The ability to absorb shocks varies drastically based on a nation's development level: