Natural disasters drive massive economic losses in Latin America

Climate change and extreme weather events have caused significant economic damage across Latin America. In Costa Rica, the Contraloría General de la República reported that between 2011 and 2025, the country lost over 859 billion colones due to these phenomena. This period also saw the loss of 57 lives. The audit highlighted a reactive management model focused on reconstruction rather than prevention, noting that key institutions like the Ministry of Public Works and Transport (MOPT) and the Costa Rican Electricity Institute (ICE) achieved only 56% in climate change resilience measures.

In a broader regional context, Swiss Re noted that recent earthquakes in Colombia and Venezuela underscore the constant risk of seismic activity. In Venezuela, recent earthquakes resulted in estimated economic losses of 20 billion dollars, though low insurance penetration means only a small fraction of the impact is covered. Swiss Re warns that rising reconstruction costs and increased exposure in high-risk zones are elevating the potential economic impact of future natural catastrophes.