California's devastating fires spark historic $57bn loss
California is facing one of the most tragic series of fires in its history. Preliminary estimates of the economic losses range from $52 billion to $57 billion (approximately €50 billion to €55 billion), including property damage, health impacts, and a decline in tourism revenue, as reported by desertsun.com.
"This is already one of the worst wildfires in California history," emphasised Jonathan Porter, chief meteorologist at AccuWeather. He warned that the situation could worsen if more buildings are destroyed in the coming days. The fires have led to the deaths of two civilians and the evacuation of tens of thousands of residents in Los Angeles County, according to desertsun.com.
According to a 2024 report by Moody’s, forest fires in California have caused over $70 billion (approximately €68 billion) in insurance losses over the past decade. A report by the Gordon and Betty Moore Foundation estimates that the total economic value of losses from 2017 to 2021 averaged $117.4 billion (approximately €114 billion) annually.
This includes reduced tax revenues and increased firefighting costs, which amount to $5 billion (approximately €4.85 billion) annually for California.
The most affected areas, such as Santa Monica and Malibu, are characterised by expensive properties, whose destruction has significantly impacted the scale of losses. In addition, there are negative effects on tourism and residents' health related to smoke inhalation and damage to buildings not destroyed by fire.
Fires in Los Angeles
The fires in Los Angeles, which began on 7 January are among the most destructive in the county's history. Los Angeles Mayor Karen Bass declared a state of emergency, and President Joe Biden offered federal assistance.
As a result of the fires, thousands of properties have been reduced to rubble. Many people have lost their homes, among them well-known stars such as Anthony Hopkins, Anna Faris, Adam Brody, and Paris Hilton.
