World Bank warns of 324 billion cubic meters annual freshwater loss

The World Bank Group's first Global Water Monitoring Report, Continental Drying, reports the world loses an estimated 324 billion cubic meters of freshwater annually, with reserves down 3% of annual supply and up to 10% in arid regions. The high-resolution data lets investors and regulators stress-test supply chains, with a 100 mm rainfall drop in India estimated to cut global real income by US$68 billion.

The World Bank Group's first Global Water Monitoring Report, Continental Drying: A Threat to Our Common Future, warns of persistent decline in global freshwater availability, with an estimated 324 billion cubic meters lost annually, enough for 280 million people. Two decades of satellite data show the global freshwater reserve declined by an average 3% of annual supply, rising to 10% in arid regions. Human-driven groundwater depletion accounts for 68% of water storage loss in non-glaciated regions, with global warming, droughts and unsustainable land and water use as drivers.

Agriculture-dependent economies, rural farming communities, and businesses with water-intensive supply chains are most affected. In Sub-Saharan Africa, droughts are linked to 600,000 to 900,000 people becoming jobless yearly, hitting poor and low-skilled rural workers hardest. India is specifically affected: a 100 mm drop in annual rainfall could reduce global real income by an estimated US$68 billion. Freshwater depletion raises wildfire likelihood by 27% generally and 50% in biodiversity hotspots, heightening physical climate risk for asset portfolios and value chains.

Businesses and governments should use the high-resolution, basin and country-level data to stress-test supply chains and asset portfolios against physical climate risk, and pursue private investment in water reuse, efficiency technologies and economic diversification. The World Bank proposes a three-pronged roadmap of managing demand, augmenting supply and improving allocation, strengthening Integrated Water Resources Management and reforming water tariffs. Aligning crop production with median water use efficiency could globally save 137 billion cubic meters, meeting the annual needs of 118 million people.

Key figure — Annual freshwater loss: 324 billion cubic meters, equivalent to the yearly needs of 280 million people