Source: UNISDR Disaster Risk Reduction
Droughts often unfold slowly, but with far-reaching impacts on agriculture, water supplies, and economic stability.
Like floods, droughts are also widespread and affect countries in every region of the world. In the decade to 2017, drought affected at least 1.5 billion people and cost USD 125 billion globally. The number of recorded droughts has increased by 29 per cent over the past 20 years. Since 2000, most drought-related deaths have occurred in Africa. Droughts often have a range of indirect impacts such as increased water scarcity, with significant direct and indirect impacts on human and planetary wellbeing.
These impacts are especially acute for marginalized groups, including children. As of 2025, over 920 million children (over one-third of the global child population) were highly exposed to water scarcity, which in turn impacts on their nutritional access. Africa and Asia demonstrate the most severe extremes. Children who lack adequate nutrition are more susceptible to severe diseases, impairing physical and cognitive development and are more susceptible to conditions such as stunting and wasting.
A drought is a period of abnormally dry weather characterized by a prolonged deficiency of precipitation below a certain threshold over a large area and a period longer than a month (WMO, 2020).
Impact of water scarcity on child nutrition
Water scarcity in many parts of the world is also associated with a decrease in women’s well-being. For instance, daily average water collection time for women in households without on-site water access at the local level across Africa can exceed 60 minutes in parts of Ethiopia, Tanzania and Uganda. These countries also report very low rates of access to safe drinking water services, with just 10-20% of the total population covered. Rising temperatures are expected to further exacerbate this global burden of water collection. However, the impacts of water scarcity can be significantly reduced by disaster risk reduction action, investments that also deliver a range of additional benefits.
Agriculture is the most vulnerable economic sector to adverse climate impacts. Some 82% of all damage and loss caused by drought was borne by agriculture in low- and lower-middle-income countries between 2008 and 2018. Meteorological drought does not always lead to agricultural drought, which depends on factors like the timing and amount of rainfall during the crop season, and how well the soil retains water. Drought causes short- and medium-term water shortages to livestock and crops (including fodder), potentially lowering yields and ultimately threatening food security. In the case of prolonged or recurring droughts, longer-term impacts can transpire, such as land subsidence and seawater intrusion along river systems with reduced water flow.
Based on historical data, recent estimates suggest that their impacts cost approximately USD 307 billion annually. These losses however, as estimated by the United Nations Convention to Combat Desertification (UNCCD), are not confined solely to direct damage in affected sectors but also encompass indirect, long-term costs that ripple through the economy, such as loss of livelihoods and land degradation.
Remarkably, despite their significant and growing impacts, and studies that have provided estimates for specific sectors, but a robust, cross-sectoral AAL estimate for drought and extreme heat is still missing. For instance, recent research by UNCDD on droughts highlights how they weaken agricultural production, reduce water availability and compromise the resilience of natural ecosystems, thereby affecting the livelihood of more than 1.8 billion people annually. Initial work has been done by CDRI to estimate the AAL of drought on the hydro-power sector, suggesting that roughly 12.9% of average hydropower production (the equivalent of 135.3 TWh/h of electricity) was impacted. Being able to have similar estimates for other drought sensitive sectors would help countries to design better risk reduction policies and investments.
Future Drought risk
Drought risk continues to intensify in many parts of the world, driven by climate change, water scarcity, poor resource management and unsustainable land use. According to forecasts, by 2050 droughts may affect over three-quarters of the world’s population. Human activity is also contributing to the increasing frequency of drought and has knock-on direct impacts on food security and human wellbeing. Assessing the current economic impact of drought, let alone its potential effects in future, is not easy given that so many of its impacts are indirect, and even the start and end dates of drought events are not always clear. However, at present drought-induced losses are estimated to cost approximately USD 307 billion each year, representing 15% of disaster-related economic losses globally, and are responsible for 85.8% of livestock deaths.
Nevertheless, there is promising work underway to improve risk analysis, using advanced modelling and the deployment of machine learning. The 2024 Drought Resilience +10 Conference (DR+10) affirmed joint efforts to strengthen drought resilience through integrated drought management and other proven approaches. However, more is needed to strengthen international collaboration around the drivers of globally networked risks – for instance, the trade and food security impacts from droughts in different parts of the world) – across regions, nations, sectors and communities.
For the big five major hazard groups (earthquakes, floods, storms, drought and heat) the recorded direct economic costs came to over USD 195.7 billion in 2023, constituting 0.015% of global GDP that year.
Earthquakes account for over a quarter (25.6%) of global economic disaster losses.
Recent data suggests that floods account for up to 35–40% of weather-related disaster occurrences.
In some regions, storms account for up to 35% of total recorded disaster costs, driven by high winds, storm surges, and heavy rainfall.
Droughts often unfold slowly, but with far-reaching impacts on agriculture, water supplies, and economic stability.
In recent years, extreme heat has become the leading cause of reported weather-related deaths
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As climate change continues to escalate, the number of recorded disasters and their associated costs rise correspondingly.