Activity was halted in many areas as a result of the fire, and several sectors were damaged, with the increasing cost of fires and economic damage in this G7 country.
Many residents in this area complained about the impact of the fires on vineyards, whether in terms of visits or sales.
More than 200 homes in this rich tourist area of British Columbia were destroyed by fire.
Tourism revenues have declined sharply this year, with visitors avoiding going to the area, which has been burning for weeks.
The vineyards scattered in the wine-producing region did not suffer direct damage from the fires, but with the temporary closure of the airport and the main highway leading to the city of Kelowna, weddings, wine tasting tours and other activities that are usually organized in it were cancelled.
“bad numbers”
Capital Economics analyst Stephen Brown said in a note that wildfires generally have little impact on the Canadian economy, according to an AFP report.
However, this year the matter is different, as he pointed out that “with the expansion of the fires to this extent, we see a greater burden than usual.”
“It appears that the worst fires in Canadian history are behind much of the recent decline in gross domestic product, and with evacuations now extending to more regions, the numbers are likely to remain bleak in the months to come.”
Among the factors that contributed to this economic decline, James Orlando of TD Bank mentioned, “Forest fires that disrupted oil and gas production in May and limited consumer activity in June,” noting also the damage to the wood sector, which employs more than 30,000 people. across Canada.
The Oxford Economics Institute warned in a report in June that the fires could cost the Canadian economy between 0.3 and 0.6 percentage points of its growth.
However, Tony Steelo of “Oxford Economics” considered that the outcome “is not as bad as could have been expected.”
“Even if the forest fires are historical in terms of their scale, they occur in fairly remote areas, with fewer repercussions on large population centers, economic centers and transportation routes, which would have led to interruption of supply lines,” he said.
increasing disasters
In its new plan to adapt to climate change, Ottawa estimated the annual cost of fighting forest fires at one billion Canadian dollars ($737 million).
And according to the Canadian Institute on Climate, she indicated that climate change, which exacerbates droughts and thus increases the possibility of fires and their frequency, may reduce the expected economic growth in Canada during the coming years in half.
By 2030, average annual disaster losses are expected to reach C$15.4 billion.
Insurers’ losses have quadrupled since 2009, exceeding C$2 billion a year, according to Insurance Canada, which represents various private insurers.
Jason Clarke, a worker in this body, expressed his concern about the situation, pointing out that Canadians no longer face a disaster every decade, but rather “several disasters successively within one year,” including fires, floods, heat waves, storms, and others.
“When countries record large losses on a regular basis, this is greatly reflected in risk assessment and insurance premiums,” he said, stressing, “We have to be better prepared.”
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