Cost of natural disasters went up in 2003

Natural disasters cost the world $60 billion (around £35 billion) in 2003, up from $55 (£31billion) the previous year.

The assessment was made by reinsurance company Munich Re for the United Nations Environment Programme.

The bulk of this year's losses were caused by weather-related catastrophes, said UNEP, which is linking them with global warming. It called on governments, business and industry to back emerging emissions trading markets to reduce these losses.

Most costly was this summer's extreme heatwave that killed at least 20,000 Europeans and destroyed more than US$10 billion's worth of crops and livestock. Second most costly were floods along China's Huai and Yangtze rivers, damaging 650,000 apartments - cost nearly US$8 billion. April and May's tornadoes in America cost more than US$3 billion.

The figures emerged as it was revealed that globally 2003 was the third hottest in more than a 150 years. The World Meteorological Organisation said it expects the average surface temperature for the full year to stand 0.45C higher than normal. The hottest year on record was 1998, when the average temperature was 0.55 C (0.99 F) higher.

The agency, which collects data from government forecasters worldwide, said the three hottest years since accurate records began to be kept in 1861 have all been in the past six years.

"The rhythm of temperature increases is accelerating," said WMO deputy secretary-general Michel Jarraud.

Keith Nuthall