Forest fires that affected the economy of Canada the world

His wine estate served as a home for Jonah Schlosser during the days of the fire at the gates of his city. But today, the inhabitant of this west Canada He is worried not only about the long-term damage to his establishment, but also about the country’s economy as a whole.

Canada This year is experiencing the most intense fire season in its history: almost 16 million hectares have burned and 200,000 people have been displaced, especially in the west and extreme north of the country.

The bill and the economic impact have been growing bit by bit for the country, which is part of the G7 group of wealthy nations.

“We have had to face a very destructive season in terms of visits and sales of vineyards,” Schlosser explained to AFP, who had to leave his home a few minutes before midnight.

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More than 200 houses were destroyed in the fire in this affluent and highly touristic area British Columbia.

This year, the tourism sector’s profits have fallen sharply. Fires and smoke that have choked the area for weeks are driving visitors away.

Tastings, weddings and other events have been canceled as Kelowna’s airport and main road are temporarily closed.

“Bad Numbers”

Stephen Brown, Inspector Capital economyA note explains that, in principle, the forest fire Has little impact on the Canadian economy.

However, it appears that this year “we’re seeing a bigger hit than usual” and that “they’re responsible for much of the recent weak GDP.”

seasonally fire It’s not over yet, he adds, adding that “the numbers will continue to deteriorate in the coming months.”

Canada Its economy shrank by 0.2% in the second quarter and the start of the third quarter followed the same trend..

Factors contributing to the decline were “wildfires, the shutdown of oil and gas production in May and lower consumer activity in June,” says TD Bank’s James Orlando.

Another affected sector Wood industryIt employs more than 30,000 people.

In a report released in June, Oxford Economics warned that wildfires could reduce Canada’s economic growth by 0.3 to 0.6 percent this year.

Still, the balance sheet is “not as bad as it could have been,” says Tony Stillo of Oxford Economics.

“While wildfires are significant, they tend to occur in remote areas, and their incidence in large population, economic centers or transportation corridors is low,” he points out.

Catastrophizing

In his new Climate Adaptation Plan, Ottawa The annual cost of fighting forest fires is estimated to be around US$737 million.

It particularly emphasizes, step Canadian Climate InstituteHe Climate changeThis worsens drought episodes and therefore makes forest fires more likely and more frequent, which could halve the country’s economic growth in the coming years.

By 2030, average annual disaster losses are projected to reach approximately US$11.4 billion..

Insurance company losses have increased five-fold since 2009 to more than $1.474 billion a year, according to the Insurance Office of Canada, which represents many private insurers.

Jason Clark, who works with the organization, says Canadians no longer face a disaster every decade, but “multiple events in one year”: fires, floods, heat waves, hurricanes.

“When countries continue to experience large losses, this has a significant impact on risk assessments and insurance premiums,” he adds. “We have to be better prepared.”

(With information from AFP)