Extreme Rain in China Caused at Least $2.2 Billion in Road Damage, Further Straining Public Purse

BEIJING—Extreme rainfall across swathes of China caused over 16 billion yuan ($2.24 billion) in road damage, the transport ministry said on Wednesday.

The preliminary estimate covers damage to roads since the start of flood season, Li Ying, a ministry spokesperson, told reporters, and includes 23 provinces, regions and municipalities—more than two-thirds of China’s administrative divisions.

Flood season officially began on July 1, according to China’s water resources ministry, and brought record rainfall to the country’s north and south.

Flooding, landslides, earthquakes, and drought have led to direct economic losses worth 52.2 billion yuan in the month of July alone, according to China’s Ministry of Emergency Management.

China’s heavily indebted local governments—already wrestling with trillions of dollars in liabilities—are ill-equipped to absorb mounting weather damages.

This adds to the pressure on fiscally-stretched administrators to find ways of paying for public services, supporting local firms and job creation.