Resilient Economies: Strategies for Sinking Cities and Flood Risks

The report examines the phenomenon of 'sinking cities' caused by land subsidence, primarily driven by unsustainable groundwater extraction and rapid urbanization. It highlights the compounding risks when subsidence interacts with sea-level rise and extreme weather, leading to significant economic losses and social disruptions. Through case studies of Tokyo, Shanghai, Rotterdam, and Jakarta, the document advocates for a shift from reactive crisis management to proactive, systems-based resilience planning involving regulatory reform, infrastructure investment, and nature-based solutions.

• Land subsidence is a widespread global issue affecting an estimated two billion people, with approximately 6.3 million square kilometres of land experiencing the phenomenon.
• The economic exposure to potential land subsidence is estimated at $8.17 trillion, which is roughly 12% of the global gross domestic product (GDP).
• Human activities are the primary drivers of subsidence, with groundwater extraction being the leading cause; approximately 60% of cases are directly attributed to groundwater withdrawal and 12% to urbanization.
• Subsidence interacts with climate risks to create immediate threats; for example, it reduces natural storm surge defences while sea-level rise pushes water further inland.
• Tokyo successfully stabilized its subsidence rates, which had reached 24cm per year by 1968, through a combination of strict groundwater regulations, a shift to surface water, and nature-based infrastructure.
• Shanghai has implemented a 'sponge city' programme and a strict annual subsidence cap of 6mm, utilizing zoning-based risk classification and lightweight construction materials in high-risk areas.
• Rotterdam manages its vulnerability through the Delta Works Programme and innovative urban designs like the Benthemplein water square, which serves as both a public plaza and a flood retention basin.
• Jakarta is among the fastest-sinking cities globally, with some northern districts subsiding by up to 280mm per year, leading to the government's decision to relocate the capital to Nusantara.
• Subsidence creates severe public health risks, including increased prevalence of waterborne diseases like diarrhoeal diseases and vector-borne diseases such as malaria due to chronic flooding.
• The report argues that investing in mitigation is 5–7 times more economically efficient than repairing or rebuilding infrastructure after a disaster.

APA

World Economic Forum (2025). Resilient Economies: Strategies for Sinking Cities and Flood Risks. https://reports.weforum.org/docs/WEF_Resilient_Economies_Strategies_for_Sinking_Cities_and_Flood_Risks_2025.pdf

Chicago

World Economic Forum. Resilient Economies: Strategies for Sinking Cities and Flood Risks. 2025. https://reports.weforum.org/docs/WEF_Resilient_Economies_Strategies_for_Sinking_Cities_and_Flood_Risks_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Resilient Economies: Strategies for Sinking Cities and Flood Risks |date=November 2025 |url=https://reports.weforum.org/docs/WEF_Resilient_Economies_Strategies_for_Sinking_Cities_and_Flood_Risks_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025resilient, author = {{World Economic Forum}}, title = {{Resilient Economies: Strategies for Sinking Cities and Flood Risks}}, institution = {World Economic Forum}, year = {2025}, month = nov, url = {https://reports.weforum.org/docs/WEF_Resilient_Economies_Strategies_for_Sinking_Cities_and_Flood_Risks_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }