Raging California fires cause losses of about $275 billion Economy News

The fires that have been raging in California, specifically in Los Angeles County for more than 11 days, are considered – according to estimates – the largest of their kind in the state in 40 years.

According to data from the Silvis Laboratory at the University of Wisconsin in Madison – published by the Associated Press – the devastation caused by the fires in the Palisades and Eaton areas in the California metropolitan area is the largest of its kind in the state since the mid-1980s, in terms of destroyed urban area, under the influence of strong coming winds. From the Pacific Ocean.

According to measurements, the Palisades and Eaton fires consumed about 10.36 square kilometers of densely populated areas in Los Angeles, equivalent to twice the urban area destroyed by the Woolsey fire in the region in 2018.

At least 25 people were killed in the forest fires that broke out in the Pacific Palisades region on the morning of January 7, and spread quickly to the surrounding areas, especially Eaton, Hurst, Sunset, and Woodley, according to the latest official tally.

Officials indicated that the fires in the Palisades and Eaton areas have been largely controlled, but the risk of new fires remains.

Economic losses

The total damage and economic losses resulting from the fires are estimated at between $250 billion and $275 billion. The fires destroyed more than 12,000 facilities, and the fires leveled entire neighborhoods to the ground.

The authorities also cut off electricity to more than 77,000 homes in the region, in an attempt to prevent the spread of the fire.

Fires broke out in various areas of Los Angeles and spread due to strong winds, resulting in the burning of more than 37,000 acres.

As a result of the fires, evacuation orders were issued for about 150,000 people. About 6.5 million people are still under threat from dangerous fires, after the fires devoured an area approximately the size of Washington, DC.

California’s economic standing

• The state of California has a distinguished economic position in the United States and the world, as it is the largest American economy and alone represents about 15% of the American gross domestic product.
• If California were an independent country, it would be the fifth largest economy in the world, ahead of countries like Britain and India.

The most prominent economic sectors in California:

• Technology: The Silicon Valley region in California is considered a global center for the technology industry, and includes giant companies such as Apple, Google, and Facebook.
• Agriculture: California is the number one producer of agriculture in the United States, especially in products such as almonds, grapes, and dairy.
• Entertainment: It includes Hollywood, the center of the American film industry, making it a leader in the entertainment sector.
• Renewable energy: One of the largest states investing in solar and wind energy.
• International Trade: California plays a pivotal role in global trade, especially through the ports of Los Angeles and Long Beach, which are among the busiest in the United States.