This study investigates the effect of flash floods on local economic activity in Central America and the Caribbean. I measure these rarely analyzed floods by constructing a high-resolution, physically based index of flash flood occurrence from satellite data and connect these to changes in local night light emissions. After accounting for tropical cyclone activity, flash floods have a delayed, short-term negative effect on economic activity. In countries with a low to medium human development index (HDI), the average negative effect can be up to 5.6%\\documentclass[12pt]{minimal} \\usepackage{amsmath} \\usepackage{wasysym} \\usepackage{amsfonts} \\usepackage{amssymb} \\usepackage{amsbsy} \\usepackage{mathrsfs} \\usepackage{upgreek} \\setlength{\\oddsidemargin}{-69pt} \\begin{document}$$5.6\\%$$\\end{document} in the following months. Countries with higher HDI appear more resilient and are only marginally affected. Also, flash floods exhibit a minor positive spatial spillover in low to medium HDI countries, besides their more substantial local negative effect. Due to their high frequency, flash floods have a detrimental effect on local economic growth in developing countries that will likely be exacerbated by climate change. (JEL )