Economic effects of the disastrous flood in the Russian Far East in 2013

Abstract

This article considers a general algorithm and elements of damage assessment from natural disasters at the macroeconomic level in a case study analyzing the direct economic consequences of a catastrophic flood in the Russian Far East in autumn 2013. Based on the data collected by the author from various sources and original calculations, estimates are provided for the direct economic damage to different sectors of the regional economy and the regional economy as a whole. It is shown that the flood caused the largest damage to buildings, people’s belongings, and the transport infrastructure. The total direct damage caused by this natural disaster amounts to 0.14% of the country’s GDP. The results obtained from calculations are compared with damage assessments made by alternative calculation methods and with the scale of damage caused by the most destructive floods in world history. Finally, the author provides rough estimates of the direct and indirect economic damage caused by this flood.