Economic Impacts of Tropical Cyclones on Global Supply Chains

This technical report by Allianz Research outlines the economic impacts of tropical cyclones (TCs) on global supply chains and highlights the increasing threat posed by these extreme weather events. It presents data indicating that TCs cause significant economic damages, averaging USD78 million daily, and result in an average of 43 deaths. The report details the escalating costs associated with TCs, particularly in the US, where losses from super-hurricanes have reached USD731 billion from 2010 to 2019. The document emphasizes the ripple effects of TCs on global trade, particularly through disruptions at ports, which handle 80% of global trade. Taiwan is presented as a case study due to its vulnerability and critical role in semiconductor production, with potential economic damages from TCs estimated between USD84.7 billion and USD94.6 billion by 2050. The report concludes by discussing the need for improved adaptation measures to mitigate these economic impacts as climate change intensifies the frequency and severity of tropical cyclones.