Water scarcity impacts the over business climate. SME’s, conglomerates, farmers, energy producers, hardware manufacturers, and businesses would not be able to function efficiently.
Again, low quality of water or restricted access to water source would increase the costs for companies.
Water scarcity enhances risks for a society and undermines its competitiveness. At present, one factor is definite: water is not conserved efficiently while it functions as the facilitator of the global growth.
According to a World Bank study, water scarcity, aggravated by a deterioration in the climate could result in some regions losing up to 6% of their GDP, trigger migration and lead to a conflict.
The united impact of rising populations, increasing incomes, growing urban areas would result in an exponential increase in the demand for water while the supply becomes unreliable.
If measures are not taken at a global level, water would become scarce in areas where it is plentiful at present (Central Africa and East Asia) and scarcity would become worse in areas where water is not available easily (the Middle East).
The report further stated that decreased freshwater accessibility and demand for more water from other sectors such as energy and agriculture could decrease water accessibility in urban areas by nearly two-thirds by 2050, in comparison to 2015 levels.
There is a greater chance of conflicts across the globe. Food price increases due to droughts could trigger geopolitical uncertainties and force people to migrate.
According to World Bank President, Jim Yong Kim, “Water scarcity is a major threat to economic growth and stability around the world, and climate change is making the problem worse. If countries do not take action to better manage water resources, our analysis shows that some regions with large populations could be living with long periods of negative economic growth. But countries can enact policies now that will help them manage water sustainably for the years ahead”.
The harmful impact of climate transformation on water could be negated with robust policy decisions. Efficient water resource management is vital for the long-term growth. Global stakeholders must arrive at a consensus to deal with the climate issues.