In recent decades, under the global warming, drought disasters have had a significant impact on society and economy in China, and the intensity and disastrousness of droughts have significant regional characteristics. It is very important to understand the spatial and temporal characteristics of drought disasters and their associated economic losses for future drought loss estimation, regional drought disaster risk management, and drought resource allocation. Therefore, based on meteorological drought composite indexes from 1961 to 2022 and drought disaster loss data from 2001 to 2022 in China (except Hong Kong, Macau and Taiwan), the spatial and temporal changes of drought disasters and their periodic characteristics were deeply analyzed, and the correlation between drought disasters and economic losses in different provinces was explored. The results show that the drought intensity has interannual and interdecadal trends, the annual average drought intensity exists a two-year oscillation characteristic, and in the monsoon period, the drought intensity shows two significant change cycles of 9 years and 19 years. The drought intensity shows a distribution characteristic of strong in the south and weak in the north, the three strong drought centers in the south are located in the southwest, the middle of Huanghuai and the southeastern of South China. After 2000, the overall crop drought-affected area, the area with no harvest, the affected population and the overall direct economic losses in China show a decreasing trend, but in the northeast and southwest regions the direct economic losses are more prominent. The correlation between drought disasters and direct economic losses in different provinces is different. On the whole, southern regions are more affected by drought, especially in the central part of the Yangtze River Basin, where drought intensity is closely related to economic losses. In addition, the direct economic losses caused by drought in different regions are not only affected by drought intensity and frequency, but also related to crop planting area, drought resistance ability, population and environment.