Impacts of Extreme Rainfall on China's Economy
Extreme rainfall in China led to over 16 billion yuan in road damage, pressuring the economy. The transport ministry reported this affects 23 provinces. Emergency repairs have been funded by the government. Local governments, already in debt, struggle to manage the financial burden of climate-related damages.
China has experienced extreme rainfall causing significant damage to infrastructure, notably roads, with estimated costs surpassing 16 billion yuan ($2.24 billion), according to the transport ministry. This underscores the increasing climate risks straining the nation's economy.
Since the onset of the flood season on July 1, extensive rainfall has battered 23 provinces, covering more than two-thirds of China's mainland. Despite allocated emergency repair subsidies totaling 540 million yuan, the cost of climate-related disasters like floods, landslides, earthquakes, and droughts amounted to 52.2 billion yuan in losses by July.
Local governments, already burdened by substantial debt, face intensified financial stress. They must navigate these challenges while maintaining public services, stimulating local businesses, and fostering employment rates.
(With inputs from agencies.)
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