Natural disasters – Financial and fiscal effects, Policy and experience for tackling them

Studies show that in addition to losing people’s lives, the consequences are just as bad for the economy.

Natural disasters such as earthquakes, floods, massive fires etc. inflict serious damage and so seem to be bad for the economy.

Depending on the experience in different countries, the negative impact on economic indicators mostly occurs in the short run, while in the long run these effects are transient and negligible for the economy and the state budget.

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Most noticeable is the direct impact of the natural disasters that we saw with the aftermath of the 21 September 2019 and 26 November 2019 earthquake in Albania. This effect was seen in the damage to infrastructure, the capital of businesses and individuals, and the potential future threat to the exploitation of natural resources.

You can read full explanation based on these topics, as below.

Financial effects and fiscal costs of natural disasters
Monetary and fiscal policy, in response to natural disaster. Case of Albania 2019
Monetary policy
Fiscal Policy
Can preventive policies be designed to cope with the lowest human and capital costs?
Policy and experience in dealing with and reducing the risk of natural disasters