How one solar event could wipe $2,000,000,000,000 from the world's economy
One major solar even could wipe trillions from the global economy if it were to occur, as the consequences on vital infrastructure would be positively catastrophic.
Electricity is understandably vital to almost every aspect of modern life, and recent major power outages in areas like Spain and Portugal have shown quite how much can be effected when you lose that infrastructure.
Not only would this potentially put people's lives at risk, especially when it comes to hospitals, but significant power losses could also have a major long term effect on the global economy as businesses and governments are equally reliant on systems that could be taken out - hence why the potential for Chinese power grid 'kill switches' are so dangerous.
The potential of a solar storm could have really damaging consequences for the world and cause major financial losses, and one group of experts has estimated that the cost would exceed trillions of dollars over time.
What is a solar storm?
As explained by NASA, a solar storm is "a sudden explosion of particles, energy, magnetic fields, and material blasted into the solar system by the Sun," and with that alone you can begin to comprehend why the prospect of it would be so dangerous.
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If it were to be directed towards Earth, we would witness what is known as a 'geomagnetic storm', which would directly impact our planet's magnetic field and mess with radio signals and electrical power.
While this poses no direct threat to the health of humans thanks to the protection provided by Earth's atmosphere, the indirect dangers would be severe and immediately apparent, and would prove devastating in both the short and long term.
How would Earth be affected by a solar storm?
As revealed by Lloyds, one of the biggest effects of a hypothetical solar storm on Earth would be the economic damage that companies and governments would suffer as a consequence.
The insurance and reinsurance marketplace estimates that "the global economy could be exposed to losses of $2.4 trillion over a five-year period, with the expected loss of $17 billion from the threat of a hypothetical solar storm."
For reference, $2,400,000,000,000 would be enough to wipe out all but seven of the world's largest economies based on GDP, and would represent over half of Germany's current GDP, who sit in third place behind China and the United States.
Lloyds evaluates that the global GDP could be reduced anywhere between 0.2% and 1.4%, and while that might not seem that significant, it would cause major financial ramifications for both the public and private sector.
"If this event happened today, it would cause damage to critical infrastructure such as energy grids and satellite networks, and disrupt power, navigation, communications and financial systems which are relied upon daily by businesses, governments, and populations globally," the report continues.