Southeast Asia might lose $28 trillion by 2070

A report found that the economy of Southeast Asia might lose several trillions of dollars in the next 50 years if the region fails in significantly reducing carbon emissions.

The report said that the region is at a turning point that can also turn the expense into an opportunity.

According to the consulting company, if Southeast Asia makes its efforts on climate change and quickly reduces emissions, in that case, it could achieve economic gains of $12.6 trillion. This amount is calculated in present value terms, average GDP growth of 3.6% each year for the next 50 years.

Deloitte noted that this potential future prevents the worst impacts on climate and creates profitable economic growth for Southeast Asia and the world from a long-term perspective.

However, according to Deloitte’s model, failing to do so might lead to global warming of more than 4°C by the year 2070. According to Deloitte’s forecast, this might cost the region economic losses for more than about $28 trillion (in today’s value terms) in the next 50 years. It can also reduce GDP growth by an average of 7.6% each year in the same period.

Southeast Asia prosperity at risk

According to Deloitte, half a billion people live in Southeast Asia, and the region has a gross domestic product of around $3 trillion.

The region covers Brunei, Indonesia, Cambodia, Laos, The Philippines, Malaysia, Myanmar, Singapore, Timor-Leste, Vietnam, and Thailand. It has seen average annual per capita GDP growth between 5% to 12% since the 21st century.

Climate inaction from agriculture to tourism will cause significant disruptions as rising sea levels and other natural disasters threaten livelihoods.

Here are the industries that will lose trillions of dollars by 2070:

• The services industry might lose $9 trillion;
• The manufacturing sector might experience $7 trillion of losses;
• Retail and tourism may lose $5 trillion.