europe and central asia (eca) affected capital loss...

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CROATIA ROMANIA SLOVAK REPUBLIC UKRAINE SERBIA Bacs-kiskun Baranya Bekes Borsod-abauj-zemplen Budapest Csongrad Fejer Gyor-moson-sopron Hajdu-bihar Heves Jasz-nagykun-szolnok Komarom-esztergom Nograd Pest Somogy Szabolcs-szatmar-bereg Tolna Vas Veszprem Zala Budapest 1.1 3.9 6.8 14 48 GDP (billions of $) FLOOD EARTHQUAKE Negligible Annual Average of Affected GDP (%) 20 5 1 There is a high correlation (r=0.95) between the population and GDP of a province. TOP AFFECTED PROVINCES FLOOD EARTHQUAKE ANNUAL AVERAGE OF AFFECTED GDP (%) ANNUAL AVERAGE OF AFFECTED GDP (%) Csongrad Jasz-nagykun-szolnok Gyor-moson-sopron Bekes Szabolcs- szatmar-bereg Tolna Heves Borsod-abauj- zemplen Bacs-kiskun Hajdu-bihar 16 13 9 4 2 2 2 2 2 1 Komarom-esztergom Budapest Pest Zala Veszprem Heves Somogy Nograd Jasz-nagykun-szolnok Vas 2 1 1 1 1 1 1 1 1 1 H ungary’s population and economy are exposed to earthquakes and floods, with floods posing the greater risk. The model results for present-day risk shown in this risk profile are based on population and gross domestic product (GDP) estimates for 2015. The estimated damage caused by historical events is inflated to 2015 US dollars. About 70 percent of Hungary’s pop- ulation lives in urban environments. The country’s GDP was approximate- ly US$126 billion in 2015, with close Hungary EUROPE AND CENTRAL ASIA (ECA) RISK PROFILES GDP $126 billion* Population 9.8 million* AFFECTED BY 100-YEAR FLOOD AFFECTED BY 250-YEAR EARTHQUAKE CAPITAL LOSS FROM 250-YEAR EARTHQUAKE $9 billion (7%) 900,000 (9%) $50 billion (41%) 2 million (23%) $6 billion (5%) 20 (<1%) *2015 estimates to 70 percent derived from services, most of the remainder generated by industry, and agriculture making a small contribution. Hungary’s per capita GDP was $12,800. This map displays GDP by province in Hungary, with greater color satura- tion indicating greater GDP within a province. The blue circles indicate the risk of experiencing floods and the orange circles the risk of earth- quakes in terms of normalized annual average of affected GDP. The largest circles represent the greatest normal- ized risk. The risk is estimated using flood and earthquake risk models. The table displays the provinces at greatest normalized risk for each per- il. In relative terms, as shown in the table, the province at greatest risk of floods is Csongrad, and the one at greatest risk of earthquakes is Koma- rom-esztergom. In absolute terms, the province at greatest risk of floods 14 49 is Csongrad, and the one at greatest risk of earthquakes is Budapest.

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C R O A T I A

R O M A N I A

S L O V A K R E P U B L I C

U K R A I N E

S E R B I A

Bacs-kiskun

Baranya

Bekes

Borsod-abauj-zemplen

Budapest

Csongrad

Fejer

Gyor-moson-sopron

Hajdu-bihar

Heves

Jasz-nagykun-szolnok

Komarom-esztergom

Nograd

Pest

Somogy

Szabolcs-szatmar-bereg

Tolna

Vas Veszprem

Zala

Budapest

1.1 3.9 6.814 48

GDP (billions of $)

FLOOD

EARTHQUAKE

Negligible

Annual Average of Affected GDP (%)

20

5

1

There is a high correlation(r=0.95) between the

population and GDP of a province.

TOP AFFECTED PROVINCES

FLOOD EARTHQUAKEANNUAL AVERAGE OF AFFECTED GDP (%)

ANNUAL AVERAGE OF AFFECTED GDP (%)

CsongradJasz-nagykun-szolnokGyor-moson-sopronBekesSzabolcs- szatmar-beregTolnaHevesBorsod-abauj- zemplenBacs-kiskunHajdu-bihar

1613942

222

21

Komarom-esztergomBudapestPestZalaVeszpremHevesSomogyNogradJasz-nagykun-szolnokVas

2111111111

Hungary’s population and economy are exposed to earthquakes and floods, with

floods posing the greater risk. The model results for present-day risk shown in this risk profile are based on population and gross domestic product (GDP) estimates for 2015. The estimated damage caused by historical events is inflated to 2015 US dollars.

About 70 percent of Hungary’s pop-ulation lives in urban environments. The country’s GDP was approximate-ly US$126 billion in 2015, with close

HungaryEUROPE AND CENTRAL ASIA (ECA) RISK PROFILES

GDP $126 billion*

Population 9.8 million*

AFFECTED BY 100-YEAR FLOOD

AFFECTED BY 250-YEAR EARTHQUAKE

CAPITAL LOSS FROM 250-YEAR EARTHQUAKE

$9 billion (7%)

900,000 (9%)

$50 billion (41%)

2 million (23%)

$6 billion (5%)

20 (<1%)

*2015 estimates

to 70 percent derived from services, most of the remainder generated by industry, and agriculture making a small contribution. Hungary’s per capita GDP was $12,800.

This map displays GDP by province in Hungary, with greater color satura-tion indicating greater GDP within a province. The blue circles indicate the risk of experiencing floods and the orange circles the risk of earth-quakes in terms of normalized annual average of affected GDP. The largest circles represent the greatest normal-ized risk. The risk is estimated using flood and earthquake risk models.

The table displays the provinces at greatest normalized risk for each per-il. In relative terms, as shown in the

table, the province at greatest risk of floods is Csongrad, and the one at greatest risk of earthquakes is Koma-rom-esztergom. In absolute terms, the province at greatest risk of floods

14

49

is Csongrad, and the one at greatest risk of earthquakes is Budapest.

B O S N I A A N D H E R Z E G O V I N A

B U L G A R I A

C Z E C H R E P U B L I C

P O L A N D

C R O A T I A

R O M A N I A

S L O V A K R E P U B L I CU K R A I N E

S E R B I A

Bacs-kiskun

Baranya

Bekes

Borsod-abauj-zemplen

Budapest

Csongrad

Fejer

Gyor-moson-sopron

Hajdu-bihar

Heves

Jasz-nagykun-szolnok

Komarom-esztergom

Nograd

Pest

Somogy

Szabolcs-szatmar-bereg

Tolna

Vas Veszprem

Zala

Budapest

The most deadly flood in Hun-gary since 1900 took place in 1970 and caused about 300

fatalities and over $500 million in damage. More recently, in 1999, two floods occurred that together caused at least eight fatalities, affected over 100,000 people, and brought over $400 million in damage. A single flood in 2010 caused no fatalities but almost $500 million in damage. These statistics highlight the lives being saved by disaster risk manage-ment efforts but also the possibility that the damage associated with flooding will rise.

This map depicts the impact of flood-ing on provinces’ GDPs, represented as percentages of their annual aver-age GDPs affected, with greater color saturation indicating higher percent-ages. The bar graphs represent GDP affected by floods with return periods of 10 years (white) and 100 years (black). The horizontal line across the bars also shows the annual average of GDP affected by floods.

When a flood has a 10-year return period, it means the probability of occurrence of a flood of that magni-tude or greater is 10 percent per year. A 100-year flood has a probability of occurrence of 1 percent per year. This means that over a long period of time, a flood of that magnitude will, on average, occur once every 100 years. It does not mean a 100-year

flood will occur exactly once every 100 years. In fact, it is possible for a flood of any return period to occur more than once in the same year, or to appear in consecutive years, or not to happen at all over a long period of time.

If the 10- and 100-year bars are the same height, then the impact of a 10-year event is as large as that of a 100-year event, and the annual average of affected GDP is dominated by events that happen relatively frequently. If the impact of a 100-year event is much greater than that of a 10-year event, then less frequent events make a larger contribution to the annual average of affected GDP. Thus, even if a province’s annual affected GDP seems small, less frequent and more intense events can still have large impacts.

The annual average population affect-ed by flooding in Hungary is about 200,000 and the annual average affected GDP about $2 billion. Within the various provinces, the 10- and 100-year impacts do not differ much, so relatively frequent floods have large impacts on these averages.

EUROPE AND CENTRAL ASIA (ECA) RISK PROFILESFLOODHungary

0 1 2 4 8

Annual Average of Affected GDP (%)

650

30

10

Affected GDP (%) for

10 and 100-year return periods

Annual average

10-year 100-year

One block = 5%

50

B O S N I A A N D H E R Z E G O V I N A

B U L G A R I A

C Z E C H R E P U B L I C

P O L A N D

C R O A T I A

R O M A N I A

S L O V A K R E P U B L I CU K R A I N E

S E R B I A

Bacs-kiskun

Baranya

Bekes

Borsod-abauj-zemplen

Budapest

Csongrad

Fejer

Gyor-moson-sopron

Hajdu-bihar

Heves

Jasz-nagykun-szolnok

Komarom-esztergom

Nograd

Pest

Somogy

Szabolcs-szatmar-bereg

Tolna

Vas Veszprem

Zala

Budapest

B O S N I A A N D H E R Z E G O V I N A

B U L G A R I A

C Z E C H R E P U B L I C

P O L A N D

C R O A T I A

R O M A N I A

S L O V A K R E P U B L I CU K R A I N E

S E R B I A

Bacs-kiskun

Baranya

Bekes

Borsod-abauj-zemplen

Budapest

Csongrad

Fejer

Gyor-moson-sopron

Hajdu-bihar

Heves

Jasz-nagykun-szolnok

Komarom-esztergom

Nograd

Pest

Somogy

Szabolcs-szatmar-bereg

Tolna

Vas Veszprem

Zala

Budapest

Hungary’s worst earthquake since 1900 took place in 1911 in Kecskemet, causing

10 fatalities. Others occurred in 1599, 1763, 1783, and 1879, and, most recently, in 2011.

This map depicts the impact of earthquakes on provinces’ GDPs, represented as percentages of their annual average GDPs affected, with greater color saturation indicat-ing higher percentages. The bar graphs represent GDP affected by earthquakes with return periods of 10 years (white) and 100 years (black). The horizontal line across the bars also shows the annual average of GDP affected by earth-quakes.

When an earthquake has a 10-year return period, it means the prob-ability of occurrence of an earth-quake of that magnitude or greater is 10 percent per year. A 100-year earthquake has a probability of occurrence of 1 percent per year. This means that over a long period of time, an earthquake of that mag-nitude will, on average, occur once every 100 years. It does not mean a 100-year earthquake will occur exactly once every 100 years. In fact, it is possible for an earthquake of any return period to occur more than once in the same year, or to appear in consecutive years, or not

to happen at all over a long period of time.

If the 10- and 100-year bars are the same height, then the impact of a 10-year event is as large as that of a 100-year event, and the annual average of affected GDP is dominated by events that happen relatively frequently. If the impact of a 100-year event is much greater than that of a 10-year event, then less frequent events make larger contributions to the annual aver-age of affected GDP. Thus, even if a province’s annual affected GDP seems small, less frequent and more intense events can still have large impacts.

The annual average population affected by earthquakes in Hungary is about 80,000 and the annual average affected GDP about $1 billion. The annual averages of fatalities and capital losses caused by earthquakes are about one and about $200 million, respectively. The fatalities and capital losses caused by more intense, less fre-quent events can be substantially larger than the annual averages. For example, an earthquake with a 0.4 percent annual probability of occurrence (a 250-year return period event) could cause about $6 billion in capital loss (about 5 percent of GDP).

EUROPE AND CENTRAL ASIA (ECA) RISK PROFILESEARTHQUAKEHungary

0 1 2 4 8

Annual Average of Affected GDP (%)

660

20

Affected GDP (%) for

10 and 100-year return periods

Annual average

10-year 100-year

One block = 10%

51

The rose diagrams show the provinces with the potential for greatest annual average capital losses and highest

annual average numbers of fatalities, as determined using an earthquake risk model. The potential for greatest capital loss occurs in Budapest, which is not surprising, given the economic importance of the province.

EUROPE AND CENTRAL ASIA (ECA) RISK PROFILESHungary

EARTHQUAKEEXCEEDANCE PROBABILITY CURVE, 2015 AND 2080

FLOODEXCEEDANCE PROBABILITY CURVE, 2015 AND 2080 The exceedance probability curves display the GDP

affected by, respectively, floods and earthquakes for varying probabilities of occurrence. Values for two different time periods are shown. A solid line depicts the affected GDP for 2015 conditions. A diagonally striped band depicts the range of affected GDP based on a selection of climate and socioeconomic scenarios for 2080. For example, if Hun-gary had experienced a 100-year return period flood event in 2015, the affected GDP would have been an estimated $9 billion. In 2080, however, the affected GDP from the same type of event would range from about $10 billion to about $40 billion. If Hungary had experienced a 250-year earth-quake event in 2015, the affected GDP would have been about $50 billion. In 2080, the affected GDP from the same type of event would range from about $80 billion to about $300 billion, due to population growth, urbanization, and the increase in exposed assets.

All historical data on floods and earthquakes are from, respectively, D. Guha-Sapir, R. Below, and Ph. Hoyois, EM-DAT: International Disaster Database (Université Catholique de Louvain, Brussels, Belgium), www.emdat.be, and J. Daniell and A. Schaefer, “Eastern Europe and Central Asia Region Earthquake Risk Assessment Country and Province Profiling,” final report to GFDRR, 2014. Damage estimates for all historical events have been inflated to 2013 US$. More information on the data and context can be found in the full publication, Europe and Central Asia Country Risk Profiles for Floods and Earthquakes, at www.gfdrr.org/publications, or by contacting Joaquin Toro ([email protected]) or Dr. Alanna Simpson ([email protected]). Please see the full publication for the complete disclaimer and limitations on methodology. Although GFDRR makes reasonable efforts to ensure all the information presented in this document is correct, its accuracy and integrity cannot be guaranteed.

Aff

ecte

d G

DP

(b

illi

on

s o

f $

)

EARTHQUAKEANNUAL AVERAGE FATALITIES

EARTHQUAKEANNUAL AVERAGE CAPITAL LOSS ($)

Komarom-esztergom10Fejer 4

Pest 30

Heves 4

Buda

pest

90

Bacs

-kis

kun

4

Zala 5

Borsod-abauj-zemplen 4

Veszprem 4

Gyor-m

oson-

sopron 3

Bekes 0Komarom-

esztergom 0

Pest 0

Csongrad 0

Hev

es 0

Jasz

-nag

ykun

-sz

olno

k 0

Borsod-abauj-

zemplen 0

Szabolcs-szatmar-bereg 0

Somogy 0

Budapest 0

Return period (years)

Probability (%)

10

10

250

0.4

50

2

100

1

150

100

50

200

250

350

300

2080

2015

Return period (years)

Probability (%)

10

10

250

0.4

50

2

100

1

10

15

5

20

25

45

30

35

40

2080

2015

52