Assessing Economic Vulnerability from Urban Flooding: A Case Study of Catu, a Commerce-Based City in Brazil

Flooding is a recurrent problem in many Brazilian cities, resulting in significant losses that affect health, assets, finance, and the environment. The uncertainty regarding extreme rainfall events due to climate change makes this challenge even more severe, compounded by inadequate urban planning and the occupation of risk areas, particularly for the municipality of Catu, in the state of Bahia, which also suffers from recurrent floods. Critical hotspots include the Santa Rita neighborhood and its surroundings, the main supply center, and the city center—the municipality’s commercial hub. The focus of this research is the unprecedented quantification of the socioeconomic impact of these floods on the low-income population and the region’s informal sector (street vendors). This research focused on analyzing and modeling the destructive potential of intense rainfall in the Santa Rita region (Supply Center) of Catu, Bahia, and its effects on the local economy across different recurrence intervals. A hydrological simulation software suite based on computational and geoprocessing technologies—specifically HEC-RAS 6.4, HEC-HMS 4.11, and QGIS— 3.16 was utilized. Two-dimensional (2D) modeling was applied to assess the flood-prone areas. For the socioeconomic impact assessment, a loss procedure based on linear regression was developed, which correlated the different return periods of extreme events with the potential losses. This methodology, which utilizes validated, indirect data, establishes a replicable framework adaptable to other regions facing similar socioeconomic and drainage challenges. The results revealed that the area becomes impassable during flood events, preventing commercial activities and causing significant economic losses, particularly for local market vendors. The total financial damage for the 100-year extreme event is approximately US $30,000, with the loss model achieving an R2 of 0.98. The research concludes that urgent measures are necessary to mitigate flood impacts, particularly as climate change reduces the return period of extreme events. The implementation of adequate infrastructure, informed by the presented risk modeling, and public awareness are essential for reducing vulnerability.