Economic Impacts of Natural Disasters

The economic effects of disasters can be catastrophic and epidemic. Major natural disasters
can have severe negative short-term economic impacts. Disasters also appear to have harmful
longer-term consequences for economic growth, development, and poverty reduction. The
range of economic effects and consequences for a disaster-affected community varies greatly
and depends on both the nature of the event and the economic health of the community.
Natural disasters cause significant budgetary pressures, with both narrowly fiscal short-term
impacts and broader long-term development consequences. Bankruptcy, forced sale, business
closure, loss of experienced workers, a depleted customer base, and population shrinkage are
exacerbated by community losses resulting in a reduction in disposable income.

The Psychological Impacts of a Disaster

The psychological impact of a disaster also impacts the survivors of the disaster which is
identified long after the physical damage has been repaired. The immediate stress of a natural
disaster triggers adrenaline a primitive physical reaction to fear. As the shock of the
immediate disaster begins to subside, it is replaced by a long-term shock in the victims as
well as the rescuers of these natural disasters. When the rush of survival instincts begins to
fade, the mental turmoil, anguish, and helplessness begin to overcome the victims as they see
the remains of homes, memories, and their personal possessions destroyed. When entire
communities are destroyed by a natural disaster, there is a shared psychotic reaction to the
loss of their personal possessions, homes, memories, and the entire neighborhood or town.
Mental health experts often see several unrelated psychological effects in disaster survivors
including generalized anxiety, extreme stress, extreme eating disorders, and other issues
where the survivor is trying to control their environment before a disaster strikes again.