. Substantial immediate output losses and reduced economic growth due to extreme events have been observed in both the short and long term . Estimates of the duration of negative effects of climate-related disasters differ, with some analyses suggesting that, on average, economies recover after 2 years  and others finding negative effects of cyclones to persist 15-20 years following an event . Rising climate vulnerability has also been shown to increase the cost of debt . Rising climatic risks negatively affect developing countries' ability to access financial markets , and their disclosure may result in capital flight . Overall, the direct and indirect economic effects of climate change represent a major risk to financial system stability . These risks and effects may further limit the availability of financial resources needed to overcome constraints, in particular for developing countries.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report