Average world incomes to decrease by almost 20% by 2050, study predicts

The climate crisis is projected to have a substantial impact on global incomes, with a study suggesting that average incomes will decrease by nearly a fifth over the next 26 years.

More details in the following report:

According to an article by the Guardian yesterday, new research, published in the journal Nature, anticipates that the annual costs of climate-related damage will reach $38 trillion by mid-century, a figure six times higher than the expense of limiting global heating to 2°C.

The study forecasts that rising temperatures, increased rainfall, and more frequent extreme weather events will lead to significant economic losses, particularly in countries least responsible for climate disruption, exacerbating global inequality.

By 2049, the world is expected to experience a permanent average income reduction of 19%, with the United States and Europe facing an 11% decrease, while Africa and South Asia are projected to suffer a 22% decline.

The analysis also outlines the potential impact of continued high emissions, suggesting that average income losses could surpass 60% by 2100.

However, if emissions are reduced to net zero by mid-century, income declines could stabilize at around 20% by the same time.

The study’s findings emphasize the importance of addressing climate change, highlighting the need for stronger adaptation strategies, particularly in the most affected and economically vulnerable countries.

It also underscores the economic benefits of mitigation efforts, estimating that the costs of reducing emissions by 2050 would be significantly lower than the projected damage costs for the same year.

The study’s authors stress the urgency of transitioning to renewable energy sources, emphasizing that structural changes are essential for global security and economic stability.

They warn that continuing on the current path will lead to catastrophic consequences, underscoring the need to halt the burning of oil, gas, and coal to stabilize the planet’s temperature.