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Water will become one of the main factors by which agencies measure countries’ creditworthiness. Some water-related issues affect the economy, such as drought and flooding, and they will be major factors in determining the credit rating of countries, which will increase the pressure on countries to take take climate change into account.
“Climate change disruptions are expected to emerge clearly and gradually over the next few decades, as water-related risks become real and widespread,” Fitch analysts Mahmoud Harb and Kathleen Shin said. They pointed out that water risk is expected to increase in countries’ credit ratings, according to Bloomberg.
Water is one of the most important raw materials in manufacturing and agriculture, so the risks associated with water will affect the economic growth of many countries.
The ratings of some countries could drop as much as 6% of GDP by 2050, due to water-related losses, according to the World Bank.
Floods in Sudan
Suffering in some areas already affected could increase, while the threat of water spreads to other areas, according to a report by Fitch, viewed by Al Arabiya.net.
Among the countries most affected by water and drought are Egypt, Kuwait, Abu Dhabi and Ras al-Khaimah, while Bangladesh, Rwanda and Vietnam face flood risk, according to Fitch .
Egypt faces a dispute with Ethiopia over the Renaissance Dam, built by Addis Ababa, which could affect Egypt’s share of the Nile’s water, which amounts to 55 billion cubic kilometers.
At the same time, Sudan is currently experiencing a wave of major flooding, which left heavy losses in the country which signed an agreement with Egypt in 1959 under the name of “Agreement for the Full Use of the Land”. Nile water ”.
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