Los Angeles wildfire economic impact could exceed $50 billion Estimated Damages Soar

AccuWeather’s preliminary estimates suggest that the devastating wildfire currently sweeping Los Angeles could result in economic damages well over $52 billion, potentially reaching as high as $57 billion.

This would position it among the top ten most expensive natural disasters on record, surpassing the $16 billion in losses from the Maui wildfires of 2023, Caliber.Az reports via foreign media.

AccuWeather’s forecast highlights that weather-related catastrophes now make up the vast majority of global damages. In 2024, these events contributed to nearly all the $320 billion in losses, with geophysical disasters such as earthquakes accounting for just 7% of the total.

"This is already one of the worst wildfires in California’s history," said Jonathan Porter, Chief Meteorologist at AccuWeather. "If more structures are destroyed in the coming days, it may become the most costly wildfire in state history, both in terms of buildings lost and the economic impact."

The fire, which has ravaged some of the city’s most affluent areas, shows no sign of slowing down, with at least five confirmed fatalities. Governor Gavin Newsom, who visited the disaster zone, was struck by the "complete and utter devastation" left in the fire's wake, which is expected to worsen as the situation develops.

The Pacific Palisades, one of the hardest-hit areas, has seen properties with an average value of around £3.5 million, contributing to the estimated high costs of the damage. "This is a terrible disaster," Porter added. "We’re just beginning to understand the scale of the destruction."

In comparison, the Maui fires of 2023 made global headlines and resulted in an estimated $16 billion in damages. Despite claims from climate change sceptics that better forest management and controlled burning could have prevented the inferno, experts are pointing to the broader trend of escalating disaster costs.

Thomas Blunck, a senior official at Munich Re, the world’s largest reinsurance company, highlighted the growing influence of climate change on natural disasters. "The destructive forces of climate change are becoming increasingly evident," said Blunck. Munich Re’s recent report indicated that property damage from natural disasters globally surged by nearly 20% in 2024, with wildfires and severe storms driving much of the increase, far outpacing losses from tropical cyclones.

The company’s annual report emphasized that extreme weather events were the main culprits behind the record-setting damages, marking a shift from previous years when geophysical events like earthquakes played a larger role. In 2024, severe weather accounted for nearly all the $320 billion in global losses.

By Aghakazim Guliyev