Recently, in the southern region of Brazil, a historic flood has occurred, leading to escalating casualties and increasing economic losses in the area.
According to data from the Brazilian Ministry of Finance, the deadly flood in the south is estimated to cost at least 13.4 billion Brazilian reais (approximately 2.6 billion US dollars) in post-disaster relief measures.
The current financial budget includes a plan to provide low-interest rate loans guarantees to small businesses, as well as a cash distribution program to families affected by the flood.
However, this figure is likely to increase as the ministry has not yet disclosed the impact of other recently announced measures on the budget, such as plans to purchase housing from the private sector for the resettlement of displaced persons.
The latest report from the Brazilian National Civil Protection indicates that as of May 15, 149 people have died, over 800 people have been injured, and hundreds are still missing. Approximately 3.2 million people have been affected by the flood in around 449 cities in the state. Furthermore, over 100,000 homes have been damaged or destroyed due to the flood.
The non-partisan non-profit organization, National Confederation of Municipalities (CNM) in Brazil, has been tracking the economic losses caused by the flood. According to their disaster report released on Wednesday (May 15th), the total economic losses caused by the flood have surpassed 9 billion Brazilian reais (approximately 1.75 billion US dollars).
Among these losses, the real estate sector has been hit the hardest, with losses reaching 4.6 billion reais (890 million US dollars). Additionally, sectors such as agriculture, livestock, industry, local businesses, and other service industries have also suffered significant losses.
As damage assessments are still ongoing, it is expected that the losses will continue to rise. The region has limited flood insurance coverage, indicating that the total insurance losses may exceed 100 million US dollars.
Since April 26th, the extreme flooding in southern Brazil, particularly in the state of Rio Grande do Sul, has made international headlines. Torrential rains within just two weeks have brought five months’ worth of rainfall to the region.
In the state capital, Porto Alegre, the level of the Guaíba River has risen more than 5 meters above normal, breaking the record set in 1941. The water and energy systems in multiple cities have been paralyzed, leading to power outages and water cuts for tens of thousands of households. Schools are closed, and major roads and airports in the state are shut down.
(This article referenced reports from Reuters)