Mumbai has world’s largest GDP exposure to terrorism

www.mangaloretoday.com

Mumbai, Sep 04, 2015: India’s financial capital Mumbai has once again topped a world list, but this time it cannot said to be a boastful chart.

As per a report published by global insurance major Lloyd’s, Mumbai has the largest exposure to terrorism at almost USD 8 billion.

Lloyd’s ’City Risk Index’ report also states that Mumbai has the second highest exposure to power outages with USD 1.92 billion of GDP at risk among the large global cities.

The Lloyd’s City Risk Index, presents the first ever analysis of economic output at risk (GDP at risk) in 301 major cities from 18 manmade and natural threats over a ten-year period.

Lloyd’s explains GDP at risk as this, “When a catastrophic event, such as an earthquake, a pandemic or a financial crisis, hits a city, it reduces its economic output. The loss of economic output, relative to the economic output that would have been expected, is the GDP at risk from an event.”

Mumbai has the largest risk with a USD 47.38 billion worth of exposure and almost one quarter of the city’s potential losses are related to pandemic risks, followed by terrorism at 16.77 percent, market crash at 12.94 percent and floods at 12.89 percent, the global insurance major Lloyd’s said today citing its report ’City Risk Index’.

The city risk index says Ahmedabad, Bangalore, Delhi, Chennai, Hyderabad, Kanpur, Kolkata, Mumbai, Pune and Surat together will generate an average annual GDP of USD 1.4 trillion in the coming decade.

Courtesy: Zeenews