It’s not just the energy and geopolitical shocks of the Iran war that are set to leave their mark on the global economy this year. There’s also El Niño.
The world is already experiencing the naturally occurring weather phenomenon, which drives anomalous weather conditions and has the power to scorch or drench. El Niños see abnormally warm Pacific waters that pump heat into the atmosphere. That surge in heat shifts global rainfall and temperatures, fueling wetter conditions in some places and drier conditions in others.
It’s not just the energy and geopolitical shocks of the Iran war that are set to leave their mark on the global economy this year. There’s also El Niño.
The world is already experiencing the naturally occurring weather phenomenon, which drives anomalous weather conditions and has the power to scorch or drench. El Niños see abnormally warm Pacific waters that pump heat into the atmosphere. That surge in heat shifts global rainfall and temperatures, fueling wetter conditions in some places and drier conditions in others.
That may sound routine, but the consequences can be stark. Prior El Niño events are estimated to have cost the global economy at least tens of billions of dollars, or by some estimates even trillions, impacting tens of millions of people worldwide. And with this El Niño forecasted to be one of the strongest on record—and landing as the world reels from the 11 hottest years on record—governments are on high alert.
