Floods constitute a recurrent meteorological threat at the national level and have a strong socio-economic impact. According to the World Bank, 94% of all economic damages related to natural disasters in Argentina are related to these phenomena.
In several towns in Buenos Aires, during the last weekend, the amount of rainfall exceeded the accumulated values of a month. Scenes of flooded streets and fields recalled what happened just two months ago after the storm that hit BahÃa Blanca.
These are increasingly less isolated cases for Argentina. A study by Climate Central from the U.S. includes the AMBA among the 20 major urban centers in the world with the highest risks of suffering floods. As they become more frequent, they have an increasingly greater impact on the national economy.
Economic impact of floods
According to the World Bank, floods annually cause the country to lose up to USD 1.400 billion in assets and about USD 4.000 billion in welfare losses. Only the natural disaster that occurred in BahÃa Blanca in March of this year reported losses of over USD 400 million. Asset losses from floods are concentrated in the provinces of Buenos Aires, Santa Fe, and Córdoba.
In its report “Climate and Development in Argentina”, the supranational organization highlights the need to invest in sectors such as water and agriculture to reduce the country’s vulnerability to these events. The World Bank indicates that the annual GDP could grow by 2.7 percent by 2030 if investments are made in water infrastructure.
“Incorporating a climate perspective into development policies is urgent to minimize the impact and reduce losses,” estimated Julie Rozenberg, senior economist and co-author of the report.
Without mitigation projects for the economic impact of floods
This approach is far from the current situation in Argentina. Although the National Hydraulic Infrastructure Fund was created in 2002 with the purpose of mitigating floods, the project has been almost halted in the past year.
This fund is financed by taxes charged on fuels (5%) and CNG (9%). According to the Open Budget of the Ministry of Economy, between 2024 and March 2025, during the libertarian administration, approximately $175 billion were collected. During that time, only $13.011 billion were used for projects. In other words, 7.5% of the total amount collected.
Some of the projects that are not being implemented include the construction of reservoirs and containment dams, the creation of drainage systems, and the implementation of linear parks and rain gardens.
Furthermore, the World Bank estimated that 28% of Argentines live in areas exposed to floods.
Other recent urban floods
In March 2024, it rained 300 millimeters in five hours in Corrientes. Due to the magnitude of the flood, the start of classes was postponed, and nearly 1000 people had to be evacuated.
That same month, the urban area of La Plata and other towns in the Buenos Aires metropolitan area were flooded due to heavy rain and hail.
