Disaster Risk Finance Diagnostic - Albania

Exposed to various natural hazards, in particular flooding and earthquakes, Albania has the highest level of disaster risk in Europe according to the World Risk Index 2019 (Bündnis Entwicklung Hilft and RUB 2019). Over the period 1995–2015, an average of 30,000 people were affected annually by natural disasters, and more than 95 percent of Albanian municipalities were affected by at least one disaster; in 2019, Albania was hit by a severe earthquake (detailed below). The economic cost of disasters could further increase as a result of the growing economy. Climate change may further increase the severity and/or frequency of weather-related disasters, such as floods and storms. By changing the patterns of such disasters, climate change also makes historical data on disasters less reliable guides to the future.