2023-07-05 12:30:58
Agricultural production at risk
The El Niño current has a devastating impact on agricultural production in many parts of the world. One of the most important consequences is changes in precipitation patterns, leading to prolonged droughts in some areas and floods in others. For example, countries in South America, such as Peru and Ecuador, often experience torrential rains during El Niño episodes. All of this can lead to landslides and massive destruction of crops.
These extreme climatic conditions have a direct impact on food production, which translates into a drop in production and an increase in food prices. Harvests of staple crops such as rice, maize and wheat are particularly impacted by the El Niño current. Farmers suffer considerable financial losses, which can lead to economic hardship for local farming communities and increased food insecurity in affected countries.
El Niño current: financial markets in freefall
The economic consequences of El Niño are not limited to agriculture. Global financial markets are also vulnerable to disruptions. Climate uncertainty and increased risks of weather events can lead to commodity price volatility.
The energy, insurance and construction sectors are particularly affected by the El Niño current. Oil and gas prices may rise due to disturbances in the producing regions. This leads to higher production costs for businesses and higher prices for consumers. In addition, insurance companies are facing higher costs due to the increase in claims related to natural disasters caused by the El Niño current.
The negative economic effects of the El Niño current can also spread globally. The countries most affected by this climatic phenomenon see their economic growth slow down. This may have repercussions on international markets. Reduced demand for goods and services due to economic difficulties in some regions may lead to lower exports from other countries.
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