Algeria: Natural disaster losses could rise to 0.7% of GDP on average
Source: Middle East Insurance Review | Feb 2024
Disaster losses could average around 0.7% of Algeria’s GDP per year, nearly double the historical average, according to a new joint study from the World Bank and the National Delegation for Major Risks under the Algerian Ministry of the Interior.
The forecast increase is largely due to the potential of a devastating earthquake in urban areas, which are experiencing rapid population growth and are most exposed to such events.
Titled, ‘Diagnostic on Climate and Disaster Risk Management in Algeria’, the study looks at the economic impact of disasters in the country and highlights the strengths and weaknesses of Algeria’s current disaster risk management efforts. It identifies priority actions that could help to boost Algeria’s resilience to future climate and disaster risks.
World Bank resident representative to Algeria Kamel Braham said, “The findings of this report underscore the urgency and importance of strengthening disaster risk management in Algeria. The report offers recommendations and priority areas for action that can guide government interventions and mobilise support from development partners.”
The Algerian government estimates that annual spending over the past 15 years to address floods, earthquakes, and forest fires averages around $255m (DZD35.1bn) a year, with about 70% allocated to floods.
Algeria has adopted numerous policies, regulations and plans, in recent years, to prepare for and respond better to disasters. While there has been much progress, more remains to be done to deepen climate and disaster risk knowledge, promote investments to reduce the risks of floods and forest fires and strengthen early warning systems. Other areas for improvement include inter-institutional coordination and information-sharing, and the promotion of natural disaster insurance.
The Algeria Disaster Risk Management Diagnostic was developed as part of World Bank technical assistance to the Algerian government. M