Los Angeles fire damage estimated at $150 billion

JP Morgan expert Jimmy Bhullar estimates that insured fire losses could exceed $20 billion, with total damages rising to $50 billion. AccuWeather Chief Meteorologist Jonathan Porter said the figure could be between $135 billion and $150 billion.

Previously, the costliest fire in California history was the 2018 Paradise fire, which caused $30 billion in damage.

Both analysts attributed their forecasts to the fact that the fires had devastated some of the most expensive neighborhoods in Los Angeles County, including Pacific Palisades and Malibu, where the median home price exceeds $3 million in modern U.S. history. United,” Porter said. Looking ahead, the total damage and economic losses caused by the wildfires could amount to about 4% of California’s annual GDP, he added.

Wildfires have been burning in Los Angeles since January 7. At least five people died and authorities expect that number to rise. About 180,000 residents were evacuated and another 200,000 received evacuation warnings. More than a thousand buildings were destroyed and about 15 thousand remain in danger.

In November, a report by consulting firm Oxera, prepared for the COP29 climate summit in Azerbaijan, showed that global economic losses from natural disasters amounted to $2 trillion over the past decade. The United States ($934.7 billion) suffered the largest economic losses during the period 2014-2023, followed by China ($267.9 billion) and India ($112 billion).