In the News Teaching Activity – Economic costs of recent flooding (Oct 2024)

What are the economic costs of the recent widespread flooding across Europe?

The recent floods in Central Europe are projected to cause significant economic losses, potentially exceeding €1 billion. Affected countries include Austria, Poland, the Czech Republic, and Romania, with Poland's insurer PZU bracing for a 10% profit hit. Damaged infrastructure and halted production at key factories will slow economic growth, with early estimates predicting up to a 0.5% GDP impact in Czechia. While short-term effects are severe, it’s not bad news for everyone – the restoration efforts could boost the construction sector and long-term investments.

Deadly floods in Europe: How much is it going to cost economies? | Euronews

1. Explain the characteristics of a ‘public good’.

2. Using information from the article, discuss whether flooding is a ‘public bad’.

3. Discuss policies that could be used to reduce the risks from flooding.