Global Assessment Report on Disaster Risk Reduction 2015
Making development sustainable: The future of disaster risk management

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Part I - Chapter 3
Figure 3.13 Top 15 countries: Earthquake AAL in relation to capital stock (excluding SIDS)
(Source: UNISDR with data from Global Risk Assessment and the World Bank.)
2.5 per cent of its building stock. This investment is now just over half of that observed in upper middle-income countries such as Peru. As a result, Greece’s earthquake AAL has come to represent 10 per cent of its annual capital investment.
In terms of PML, over a 20-year period there is a 4 per cent probability of a loss equivalent to the value of more than 8 per cent of Greece’s capital stock (Figure 3.14) and over 300 per cent of the country’s annual capital investment. The country’s AAL is also equivalent to almost 2.5 per cent of its national income (GNI). It is unclear whether this contingent liability was taken into account when the international community provided over EUR 200 billion in loans to support the Greek economy between 2010 and 2012. In reality, earthquake risk could spill over into the financial system and become increasingly systemic.
(Source: UNISDR with data from Global Risk Assessment.)
Figure 3.14 Top 15 countries: Earthquake PML500 in relation to capital stock (excluding SIDS)
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