The effects of El Niño, a climatic phenomenon that can disrupt weather patterns, have been seen in parts of the world since 2015, impacting economies, markets and consumers. While some countries in Asia Pacific and other regions can experience poor harvests due to dryness and heatwaves, the USA can benefit from El Niño owing to more rainfall and warmer winters. Reduced crop output can result in food price hikes, triggering inflation and higher costs for countries that rely on imported food.
- El Niño is a phenomenon that occurs irregularly in the tropical Pacific Ocean every two to seven years and affects weather all around the world. Scientist have confirmed the arrival of an El Niño event in March 2015 and warned that its effects could last until the end of the year;
- The El Niño in 2015 is likely to bring reduced rainfall and dryness in Southeast Asia, Australia, India and West Africa, affecting production of major crops in these countries. Agriculture plays an important role in many economies including Vietnam, Indonesia, India and the Philippines. In 2014, gross value added (GVA) from agriculture, hunting, forestry and fishing accounted for 14.3% of Indonesia’s total GVA. Meanwhile, El Niño weather shock can actually benefit the USA as it helps to reduce drought in California, diminish tornadic activity and hurricanes, and bring warmer winters;