Experts predicted the collapse of the global economy due to climate change

International banks' economic models do not include protection against climate-related risks. Governments and financial authorities are also ignoring the likely impact of widespread droughts, tsunamis and earthquakes, The Guardian reports .

At the same time, the scale of natural disasters by 2070 may increase significantly against the backdrop of global warming. And, as the publication writes, the combination of extreme weather with a lack of realistic preparation for it can lead to the destruction of national economies.

“We are currently experiencing a paradigm shift regarding the speed, scale and severity of risks caused by the climate crisis. Many regulations and government actions are dangerously out of touch with reality,” said Laurie Laybourne, spokeswoman for the Strategic Initiative to Combat Climate Risk.

Thus, the average global surface temperature of the Earth relative to the pre-industrial level of 1850–1900 is approaching two degrees Celsius. This also increases the risk of extreme weather events: forest fires, floods, changes in Atlantic currents and melting of the Greenland ice sheets.

In 2025, the average temperature of the entire planet was 1.44 degrees Celsius above pre-industrial levels, according to an analysis by independent nonprofit Berkeley Earth. And even as the climate transition approaches and experts increasingly predict possible weather shocks, governments are not committing to additional funding to help prepare for their consequences.

“For financial institutions and policymakers, this is a fundamental misunderstanding of the risks we face. We are thinking about something similar to the economic crisis of 2008, and therefore we believe that we can recover quickly. But once we have ecosystem collapse or climate change, we won't be able to save the Earth the way we saved the banks,” said Dr Jesse Abrams from the University of Exeter.

The Guardian notes that in 2025, experts predicted that the global economy could face a loss of 50% of GDP between 2070 and 2090 as a result of catastrophic climate shocks.

Earlier, the mediareported that more and more major Russian officials and entrepreneurs are worried about the financial crisis looming in Russia. According to The Washington Post, it could happen in the next three to four months.