In the event that it’s not raining, it is pouring. Geopolitical and political crises, inflation, supply-chain bottlenecks, exactly what else could possibly happen this year? Natural catastrophes.
Upon August 8, Seoul was hit simply by some of the heaviest down pours in 80 years, killing at least nine people. The last time water damage of such magnitude in the south of the Korean Peninsula was recorded was in 1942.
According to the General Insurance Association of Korea, more than 7, 500 car owners claimed compensation just for flooding or damage to their vehicles, using the total amount of payment estimated at about 97. 76 billion earned (US$74. 6 million).
As for the stock market, although the Kosdaq Composite Index remained resilient, Insun ENT , a major total environmental service provider, soared by more than 16% in one day time.
Besides the financial consequences, the country could face yet another political crisis. According to the weekly poll , Southern Korean President Yoon Suk-yeol’s approval rating fell 3. 7 percentage points from a week earlier, to 29. 3%. The particular negative assessment associated with Yoon’s conduct of state affairs gained 3. 3 percent points to 67. 8%. By comparison, the amount of public support for all of us President Joe Biden was 36% in the second half of July.
There is absolutely no reason to believe which the Korean head associated with government will resign tomorrow; however , the amount of social tension in the land may rise. Inside a recent study , the International Monetary Account (IMF) showed that will unrest can have a damaging economic impact because consumers become spooked by uncertainty plus output is lost in manufacturing and services.
In China, a yellowish alert was released on August ten as Typhoon Mulan, the seventh one particular this year, approached the coastal areas of Hainan and Guangdong provinces in southern Cina. The problem is that Hainan is the leading seeds production base within China, and Guangdong is considered the economic plus industrial center of the country. According to recognized figures, annual damage from typhoons in China reaches regarding $5. 6 billion dollars.
In Europe, in the meantime, the problem has exactly the opposite nature. Water levels within the Rhine River are getting close to alarmingly low levels. Based on new forecasts, Europe’s most important waterway to get inland transport of products by barge can become impassable any time soon.
Ranges below 40 centimeters would mean barges in a key transit stage in Germany can no longer pass. Because of this, the European Union could encounter shortages of energy plus goods. It is estimated that as much as 10% of all Euro chemical shipments, which includes raw materials, fertilizers, intermediates, and finished chemical products, are transported along the Rhine Lake.
The particular Rhine accounts for about 28% of Germany’s chemical shipments. According to Kiel Start study , “low water levels lead to transport disruptions that cause a significant and economically meaningful decrease of financial activity. ” Now the economic impact could be even worse, because supply chains had been already suffering from the Covid-19 pandemic and geopolitical tensions.