New York (CNN Business) Climate change will have an impact on economic growth over the next decade — and not for the better. North America is no exception, but it is better off than the rest of the world.

By 2050, climate change will shrink the US economy by 1.1%, according to a report from the Economist Intelligence Unit. The same holds true for North America's economy as a whole, according to the report. Natural catastrophes, such as wildfires and droughts, for example, will continue to be a drag on the economy with worsening climate conditions.

Still, the United States is comparably well off. Western Europe's GDP growth stands to drop 1.7% over the next 30 years, putting it in second place behind North America.

Preparation for climate change is higher in these regions, which is making them more resilient. Wealthier and more developed economies have it easier when it comes to battling the onslaught of climate challenges. But being rich is only part of the deal. The quality of government institutions also matters.

Institutions must be able to adapt to change and put effective mitigation policies in place to remain intact in the face of climate challenges. But being rich is only part of the deal The quality of government institutions also matters.

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