In economic terms, such events can have a very high price tag. Take, as an illustration, the wildfires in Alberta, which deducted about 1 per cent of Canada’s GDP in the second quarter of 2016. While the economy subsequently rebounded, this event was a setback to Canada’s return 1/7  BIS central bankers' speeches  to full potential.
We know that such extreme weather-related events are already more frequent than they were in the past. They will become even more so as average global temperatures continue to rise, even if action is taken now to address climate change. But in the absence of such action, the tab will be much larger.