Global warming will not only wreak havoc on the global economy but could also result in dire economic consequences for Hungary and other countries in Central & Eastern Europe. G7 economies, for example, could lose USD 5 trillion a year, or 8.5% of their GDP by 2050, if global average temperatures rise by 2.6 degrees Celsius compared to pre-industrial levels, according to a joint analysis by Oxfam and the Swiss Re Institute. The organizations contend that economic decline will be twice as much as the one suffered during the Covid-19 pandemic.
Within this scenario, Hungary’s GDP will shrink by 8.5% by 2050. In a less pessimistic case, if global temperatures rise by only 1.5 degrees Celsius, a 3% GDP loss is to be expected in Hungary (while the global economy will shrink by 4.2%). The study also looked at the worst-case scenario, if no efforts to battle climate change are made by countries. In that case, the average temperature would increase by 3.2 degrees Celsius, which would lead to a global GDP decline of 18.1% and make for an 11.4% downturn for Hungary.
Sources: Menedzsment Forum, Guardian
The EU’s employment rate reached a record high of 70.9% in the fourth quarter of…
Greece has announced plans to repay its first bailout loans a decade ahead of schedule,…
Despite their export-driven economies and strong manufacturing bases, Central and Eastern Europe (CEE) countries may…
Slovenia is at the centre of a strategic struggle between France and the US, as…
The EU’s internal market is still falling short of its founding promise. Despite decades of…
An outbreak of foot-and-mouth disease (FMD) has prompted mass animal culls and tightened border controls…