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Extreme weather events have established themselves as one of the greatest risks to the global economy in 2025, according to the latest report from the World Economic Forum (WEF). These natural phenomena not only cause immediate devastation, but also have long-term economic repercussions, mainly affecting sectors such as agriculture, livestock and tourism.
Forest fires and other disasters, such as hurricanes and droughts, fracture the world's prospects in various areas. The direct and indirect costs of these events are high. In California, for example, recent fires have caused losses ranging from US$250 billion to US$275 billion, affecting property, jobs and public budgets.
In addition, these disasters can eliminate between 15,000 and 25,000 jobs, exacerbating economic instability. The destruction of infrastructure and loss of productivity also generate volatility in financial markets, affecting investor confidence and increasing economic uncertainty.
Under enemy fire
Continuing with the fires in California, these have been catalogued as some of the most destructive in the history of the region. More than 27 people have lost their lives, and thousands of acres of land have been devastated, affecting both property and public infrastructure.
In Chile, the scenario is similar, although the area devastated by fires is less than in 2024. The regions of Biobío (472), Metropolitana (450) and La Araucanía (417) are the most affected. However, the economic effects are not limited to direct losses, as the impact extends to other sectors of the economy.
The commodities market is one of them, especially in sectors such as timber. The destruction of forest resources could increase timber prices, creating speculative opportunities in this market. In addition, agriculture could experience price increases in products such as fruits and vegetables.
Although natural disasters do not usually affect major indices such as the S&P 500, they generate volatility and increase interest in "safe haven assets" such as gold and the dollar.
Global economic resilience will depend on the ability of governments and businesses to mitigate these risks and adapt to new economic challenges.
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