devdiscourse.comIMF Finds Climate Disasters Threaten Sovereign Debt as Adaptation Becomes an Economic Necessity | Science-Environment
The IMF finds that climate disasters significantly increase sovereign default risks, with every 1% rise in disaster-related losses as a share of GDP raising default odds by 2–3%, highlighting climate change as a growing fiscal challenge. The report concludes that greater investment in climate adaptation, supported by concessional finance such as Official Development Assistance (ODA), can strengthen resilience, reduce disaster losses, and improve long-term debt sustainability for vulnerable coun
