Extreme climatic events and the economy: how are they related? The study by the Croatian National Bank

“What Are the Short- to Medium-Term Effects of Extreme Weather on the Croatian Economy?” is the title of the study conducted by the Croatian National Bank that, using the European Extreme Events Climate Index, investigates and studies the short- and medium-term effects of climate change on the country’s economy.

The analysis compared data concerning industrial production, economic inflation, energetic inflation and unemployment rate changes over the period 1999-2022, revealing a close correlation with meteorological variables. The main conclusion of the study is that extreme climatic events, particularly drought, have a strong impact on inflation trends, a phenomenon that it is essential to take into account, especially in decisions regarding monetary policy.

Click here to read the full study.