Every year on October 13, the world marks the International Day for Disaster Risk Reduction. In 2025, the UN issued a stark warning: the economic impact of natural disasters is reaching record levels, threatening global stability and sustainable development. 

According to UN data, direct losses from natural disasters amount to roughly $202 billion annually. However, the real figure may be up to eleven times higher—over $2.3 trillion each year. Developing countries bear the brunt of these losses, while wealthier nations face unprecedented financial damages. 

Despite this, the UN notes that investment in disaster risk reduction (DRR) remains critically low. Less than 1% of public budgets are dedicated to it, and only 2% of international aid projects include DRR among their goals. “The lack of risk-informed planning is making the world more vulnerable,” the agency warned. 

A key issue lies within the private sector, which controls 75% of global investments yet often overlooks climate-related threats. This neglect drives up both human and economic losses—especially in border regions exposed to floods, fires, and droughts. 

The UN urged governments and companies to ensure that all public and private investments are risk-informed and climate-resilient. “Prevention is not a cost—it’s protection for the future,” stated the UN Office for Disaster Risk Reduction. 

Proposed measures include increased public funding for DRR, stronger international cooperation across borders, and mandatory risk assessments for infrastructure and development projects. 

Experts warn that natural disasters are pushing many countries into cycles of debt, reduced revenues, and recurring humanitarian crises. Without sustained investment in prevention, the costs will keep rising. “Reducing risk today means saving lives and billions tomorrow,” the UN concluded.