Damaging Wildfires in Los Angeles Lead to $164 Billion in Losses: Analysis
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Synopsis
A recent report reveals that the two largest wildfires in Los Angeles County may have caused property and capital losses totaling up to $164 billion, highlighting the severe impact on the local economy and education system.
Key Takeaways
- Wildfires in Los Angeles caused potential losses of $164 billion.
- Insured losses are estimated at $75 billion.
- GDP loss predicted at 0.48% for 2025.
- Education system significantly damaged.
- Long-term recovery expected to take years.
Los Angeles, Feb 6 (NationPress) A recent analysis reveals that the two most significant wildfires in Los Angeles County may have resulted in total property and capital losses as high as $164 billion. This finding is part of a report published by the University of California, Los Angeles (UCLA) on Tuesday.
The study indicates that the damages from the Palisades and Eaton fires could span between $95 billion and $164 billion, with insured losses approximated at $75 billion.
The report, crafted by UCLA Anderson Forecast economists Zhiyun Li and William Yu, forecasts a 0.48% reduction in county-level GDP for 2025, translating to roughly $4.6 billion, alongside a total wage loss of $297 million for local businesses and workers in the affected regions, according to the Xinhua news agency.
“Without significant and effective wildfire mitigation strategies and investments, Californians are likely to encounter increasingly elevated insurance premiums and heightened health hazards due to wildfire-related pollution,” the report warns, adding that the housing market in Los Angeles, especially for rental properties, will likely become increasingly unaffordable.
UCLA Anderson Forecast is recognized as one of the most closely monitored and frequently referenced economic projections for California and the nation, as per the UCLA Anderson School of Management website.
Last month, Los Angeles County, the most densely populated county in the United States, experienced its most devastating wildfires on record. The two major fires resulted in the deaths of at least 28 individuals and the destruction of more than 16,000 structures. The Palisades and Eaton fires consumed over 23,700 acres (95.9 square km) and 14,000 acres (56.7 square km), respectively.
Moreover, the catastrophic wildfires that began on January 7 have severely impacted the region's educational infrastructure, damaging or destroying over a dozen schools.
As officials prepare for the challenging process of rebuilding, they estimate costs in the hundreds of millions of US dollars, with recovery projected to take years.
Reports indicate that at least 12 schools in Los Angeles County have sustained significant damage, with five campuses completely destroyed, according to CalMatters, a nonprofit news organization focusing on local issues in California. The Los Angeles Unified School District, the second-largest school system in the nation, lost two elementary schools in Pacific Palisades, while Palisades Charter High School suffered extensive damage. Additionally, three other elementary schools were destroyed in Pasadena and Altadena.
