Storms, droughts and floods are leaving an increasingly large economic footprint. A new report from the Network for Greening the Financial System (NGFS) — to which DNB contributed — shows that the direct costs of weather-related disasters have more than doubled globally, to 224 billion dollars in 2025.

The researchers analysed 31 case studies from 28 countries covering the period 2015 to 2025. The findings are striking: in some cases, damage was limited to 0.03 per cent of GDP; in others it reached as much as 57 per cent. Inflation, too, can rise sharply — in some countries by as much as 17 per centage points as a result of extreme weather.

Crucial for investors and financial professionals is the cross-border transmission effect. Through trade, international supply chains and financial markets, damage can spread globally: when one country is severely hit, others may feel the impact too. DNB therefore advocates stronger analytical frameworks, better data and more forward-looking risk assessment, so that financial institutions can better anticipate and price in climate shocks.

Source:  dnb.nl/algemeen-nieuws/achtergrond-2026/wat-extreem-weer-doet-met-de-economie