Source: Fortune
Summary
El Niño, a natural weather pattern, has formed over the Pacific Ocean and is expected to be particularly intense this year, with forecasts suggesting a “very strong” event. This could lead to significant economic losses, with past El Niño events causing global income losses of up to $5.7 trillion. The impact will be felt globally, with poorer countries and those reliant on agriculture likely to be hit the hardest. Inflation, particularly in food prices, is also expected to rise.
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El Niño’s arrival comes as the global economy is still recovering from the Iran crisis. The event’s impact on weather patterns will be felt worldwide, with droughts, floods, and heatwaves expected. The economic cost could be significant, with estimates suggesting trillions of dollars in losses. Companies and governments are being warned to prepare for the potential disruption.
El Niño’s effects will be felt in the supply chain, with potential shortages and price increases in staple crops. The Panama Canal, a critical transit point, may also be impacted, with low water levels potentially hampering shipping.
Robert Muggah, a political scientist, has warned that El Niño should be seen as a “systemic shock” that requires preparation from governments and companies.
The world economy is about to face a new kind of shock.
Author: Evan Null
