Climate-related risks pose a frequent, sizeable, and increasing risk to fiscal sustainability. Between 1950 and 2015, 40 countries experienced disasters that caused damage exceeding 10% of GDP (Cevik and Huang 2018).1 In 2017, global losses related to climate change amounted to $340 billion, of which $200 were uninsured (IMF 2019a).
As climate change risks increase, countries that are particularly vulnerable face persistent uncertainty over both current and future implications for fiscal sustainability.
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