# Climate change impact on global economy and food

> Live situation record from CLSTR: https://clstr.news/situations/climate-change-impact-on-global-economy-and-food
> Updated: 2026-09-02T04:15:42.000Z. Sources: 6. Developments: 2.

Research indicates that climate change poses severe risks to global food security and economic stability.

A study published in Earth’s Future suggests that rising temperatures and water shortages could drastically increase agricultural costs. Specifically, a 3 degree Celsius increase in global temperatures could triple average wheat prices compared to 2010 inflation-adjusted levels. Models focusing on water deficits preceding harvests have successfully explained 74% of global wheat price fluctuations between 2000 and 2021.

Broader economic assessments highlight that climate-related disasters may cost an average of $450 billion annually, with over half of these losses remaining uninsured. Some economists warn that a 1°C increase in global temperatures could result in a long-term drop in global GDP of between 20% and 50%. In response to these threats, some researchers advocate for ‘decarbonized growth’ to decouple economic expansion from CO2 emissions.

## Timeline

### 2026-09-02: Climate change poses significant risks to global economic stability

Climate-driven extreme weather is projected to cost $450 billion annually, with some estimates suggesting a 1°C temperature rise could slash global GDP by up to 50% in the long term.

2 sources. https://clstr.news/cluster/climate-change-poses-significant-risks-to-global-economic-stability

### 2026-08-24: Climate change could triple global wheat prices

A study warns that a 3 degree Celsius rise in global temperatures could triple wheat prices due to severe water shortages, which explain 74% of wheat price fluctuations.

4 sources. https://clstr.news/cluster/climate-change-threatens-to-triple-global-wheat-prices

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Cite as: Climate change impact on global economy and food. CLSTR, https://clstr.news/situations/climate-change-impact-on-global-economy-and-food