UC Davis economics PhD student Matias Solorza presented his work on the regional economic impacts of natural disasters in Chile. Matias' work analyzes the macroeconomic responses of Chilean regions to extreme weather-related shocks, such as floods and wildfires, using local projections. Unlike the positive effects observed in some developed countries, his findings reveal a persistent decline in regional GDP and a temporary reduction in private consumption. Employment initially rises, driven by emergency-related activities and later by broader macroeconomic adjustments, largely due to individuals transitioning from inactivity to the labor force. At the sectoral level, the GDP decline is primarily driven by contractions in services and retail. In terms of employment, his results show a short-term increase in the construction sector, followed by delayed effects in retail. Lastly, his results suggest that the 2023 floods in Chile contributed to at least a 0.2 percentage point reduction in GDP for that year.