Earthquake could mean $127.5B hit to Canadian economy, Conference Board warns

Canada could suffer a $127.5-billion economic hit if a massive earthquake were to strike its west coast – an event the country wouldn’t be financially prepared for, The Conference Board of Canada warns in a new report.The report, called “Canada’s Earthquake Risk: Macroeconomic Impacts and Systemic Financial Risk,” which was funded by the Insurance Bureau of Canada, stress tested the country’s economic resiliency to a massive earthquake off the coast of British Columbia. It used previous earthquake stress tests as a barometer, and analyzed the effects a large-scale earthquake would have in the decade to follow.

While the probability of a detrimental earthquake on Canada’s west coast in the near future isn’t high – Natural Resources Canada estimates a 30 per cent probability over the next 50 years – the Conference Board found that a B.C. earthquake on the same scale as the 9.1-magnitude quake and tsunami that struck …