Overview

• Research from the Potsdam Institute for Climate Impact Research shows that erratic weather events intensified by global warming are affecting global production and consumption across all income groups.
• Middle-income countries like Brazil and China are highly vulnerable to severe impacts and negative trade effects due to their geographic location and trade dependencies.
• The United States is expected to face the largest percentage increase in weather-induced supply chain disruptions over the next 15 years, despite currently low risks.
• Climate change is projected to worsen economic risks globally, with ripple effects along supply chains impacting goods and services worldwide.
• Adaptation and resilience measures are crucial for mitigating these risks and protecting trade partners, emphasizing the interconnected nature of global economies.