Los Angeles: The two largest wildfires that recently devastated Los Angeles County may have caused total property and capital losses of up to 164 billion US dollars, according to a new report by the University of California, Los Angeles (UCLA).
The report, published on Tuesday, estimates that the Palisades and Eaton fires resulted in damages ranging between 95 billion and 164 billion dollars, with insured losses expected to reach 75 billion dollars.
Authored by UCLA Anderson Forecast economists Zhiyun Li and William Yu, the study projects a 0.48-percent decline in Los Angeles County’s GDP for 2025, translating to an economic loss of approximately 4.6 billion dollars. Additionally, local businesses and employees in the affected areas are expected to suffer a total wage loss of 297 million dollars, according to Xinhua news agency.
The report warns that without substantial and effective wildfire mitigation efforts and investments, Californians will continue to face rising insurance premiums and increasing health risks from wildfire-related pollution. It also highlights the growing unaffordability of Los Angeles' housing market, particularly for rental units.
UCLA Anderson Forecast is among the most widely followed economic outlooks for California and the United States, according to the UCLA Anderson School of Management.
Last month, Los Angeles County, the most populous county in the United States, experienced some of the most catastrophic wildfires in its history. The Palisades and Eaton fires killed at least 28 people, destroyed over 16,000 structures, and scorched 23,700 acres (95.9 square km) and 14,000 acres (56.7 square km), respectively.
Beyond the destruction of homes and businesses, the wildfires have also had a severe impact on Southern California’s education system, with over a dozen schools significantly damaged or destroyed. As school officials begin the daunting task of rebuilding, the estimated cost runs into hundreds of millions of dollars, with recovery expected to take years.
At least 12 schools in Los Angeles County suffered substantial damage, with five campuses completely destroyed, according to CalMatters, a nonprofit news organization focused on local issues in California. Los Angeles Unified School District, the nation’s second-largest school system, lost two elementary schools in Pacific Palisades, while Palisades Charter High School sustained heavy damage. In Pasadena and Altadena, three additional elementary schools were destroyed.
As officials assess the extent of the devastation, the long-term economic, housing, and educational consequences of the wildfires continue to unfold.
With IANS inputs