Assessing the Macroeconomic Consequences of Climate Change: Impacts on GDP Growth, Inflation Volatility, and Agricultural Productivity in Developing Economies

Abstract

The research examines the macroeconomic effects of climate change on developing nations while studying their resulting impacts on Gross Domestic Product growth together with inflation stability and agricultural production output. Developing countries face rising economic instability because climate-related events including temperature hikes along with floods and droughts are becoming stronger in frequency. The goal of this research work is to establish the effects that climate variability has on primary economic variables through quantitative methods. A research analysis uses panel data covering 50 developing countries from 2000 to 2023 to evaluate the macroeconomic performance relation to climate shocks by implementing multiple regression models. Evidence shows climate change produces meaningful negative effects on economic development together with reduced agricultural production alongside larger fluctuations of inflation. The research results demonstrate that climate change poses economic threats which extend past environmental problems to present financial challenges to Global Southern nations. The study advises national policymakers to evaluate potential climate risks through strategic development planning alongside implementing climate-resistant farming methods and enhancing their capability to obtain worldwide climate funding. The policy framework for monetary control requires adaptation to include price fluctuations which were initiated by climate change events. The study delivers broad-reaching results because they show the necessity of developing strong economic plans based on climate resilience as well as requiring worldwide cooperation to assist economies that face vulnerability. Sustainable development and long-term economic stability in developing regions requires direct attention to their macroeconomic effects of climate change.