It is the biggest threat that the city could face.
The biggest threat Singapore could face is a market crash that could slash US$1.3b from its current GDP of US$320.41b, Lloyd’s revealed. Overall, the city risks losing US$3.24b in total from both man-made and natural threats.
According to Lloyd’s City Risk Index, the top five threats Singapore could face are a market crash, floods (US$420m), a human pandemic (US$380m), a cyber attack (US$330m), and a commodity price shock (US$320m).
“Commodity price shock is a particular threat in cities in import-heavy island nations like Singapore,” the report said.
One sensitive commodity for the island nation is water. “It has dealt with this is an entrepreneurial fashion by ensuring its investment in water sustainability technology is world-leading,” the report added.
Compared to other cities, however, the amount of GDP at risk (1.01%) in Singapore is smaller than others. Singapore is the 46th city most exposed to these large risks, compared to Tokyo (1st) which could lose US$24.31b, Shanghai (9th) which could lose US$8.48b, and Delhi (44th) which could lose US$3.52b.
The index revealed that 279 cities across the world with a combined GDP of US$35.4t risk losing on average US$546.5bn in economic output annually (GDP@Risk) from all 22 threats identified. This comprises US$320.1bn to man-made risks and US$226.4bn to natural catastrophes.
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