The impact of natural disasters on economic growth: An empirical study on five continents

Natural disasters remain one of the most fundamental challenges to sustainable development on the global agenda in the 21st century. The direction and persistence of the net impact of these events on economic growth are subjects of an ongoing debate in the literature, situated between approaches that view them as a negative shock and the "creative destruction" hypothesis, which suggests they create opportunities for technological renewal. This study empirically investigates the effects of natural disasters on economic growth from a comparative intercontinental perspective, considering this theoretical dichotomy. For this purpose, the relationship between economic growth, represented by per capita GDP, and disaster indicators, represented by the number of people affected and total damage, was analyzed for five continents using data spanning the 2000-2023 period. The results of the analysis revealed a statistically significant, unilateral causal relationship from disaster indicators (number of affected people and total damage) to economic growth. The findings suggest that natural disasters function as a significant external and negative shock to economic systems, underscoring the critical importance of shifting the policy paradigm from reactive "crisis management" to proactive "risk reduction" strategies. Within this framework, it is concluded that investments in disaster risk reduction and policies aimed at enhancing societal resilience are integral components of sustainable economic development.