# Climate and natural disaster economic impacts in Latin Am > Live situation record from CLSTR: https://clstr.news/situations/climate-and-natural-disaster-economic-impacts-in-latin-am > Updated: 2026-08-15T06:30:00.000Z. Sources: 7. Developments: 2. Climate change and natural disasters are increasingly impacting the financial stability and economic resilience of Latin American nations. Reports indicate that rising frequencies of hurricanes, droughts, and floods are transforming agricultural and real estate portfolios into significant financial risks. In the Caribbean and Central America, 41% of banks currently lack formal tools to measure how environmental factors affect credit portfolios, prompting central banks to implement climate stress tests. Economic losses from extreme weather have been substantial. In Costa Rica, an audit reported losses exceeding 859 billion colones between 2011 and 2025, noting that management has been largely reactive rather than preventative. Additionally, seismic activity in Colombia and Venezuela has caused significant damage, with recent earthquakes in Venezuela resulting in estimated economic losses of 20 billion dollars. Experts warn that low insurance penetration and rising reconstruction costs are elevating the potential impact of future catastrophes. ## Timeline ### 2026-08-15: Natural disasters drive massive economic losses in Latin America Climate change and natural disasters are driving massive economic losses in Latin America, with Costa Rica losing billions to weather events and Venezuela facing significant earthquake-related damages. 4 sources. https://clstr.news/cluster/natural-disasters-drive-massive-economic-losses-in-latin-america ### 2026-08-08: Climate change shifts financial risk profiles in Latin America Climate change is driving financial risks in Latin American agriculture and real estate, while Colombia faces rising Amazonian deforestation and new environmental leadership. 3 sources. https://clstr.news/cluster/climate-change-shifts-financial-risk-profiles-in-latin-america --- Cite as: Climate and natural disaster economic impacts in Latin Am. CLSTR, https://clstr.news/situations/climate-and-natural-disaster-economic-impacts-in-latin-am