Certain climate shifts may also drive positive economic impacts, Alexander Shirov, Director of the Institute of Economic Forecasting (IEF) at the Russian Academy of Sciences, pointed out, Interfax reported yesterday.
For instance, Russia’s annual gross domestic product could grow by 1.2 trillion rubles ($11.58 billion), or 0.7% of 2023 GDP, if the country’s average annual temperature increases by 1° Celsius, according to the IEF. Currently, the average rate of warming in Russia is 0.2° C per decade, Vilfand explained.
Key beneficiaries of a 1° C warming include agriculture and the development of the Northern Sea Route, the report stated. However, with further warming, Russia’s agricultural productivity zone will shift northward, moving from the southern Krasnodar and Rostov regions to more northern territories, Shirov added.