El Nino threat to GDP looms large in H2
image for illustrative purpose
Heat Waves in Winter
♦ Winter Outlook report confirmed development of El Nino for winter months
♦ Impact of super El Nino on northern hemisphere would also hit global trade
♦ It’ll also affect India’s exports as well
New Delhi: Another unexpected development that will weigh on the economy and is likely to have a ripple effect on the stock markets, is that El Nino is in place heading into winter for the first time in four years, driving the outlook for warmer-than-average temperatures for the northern hemisphere. The US’s National Oceanic and Atmospheric Administration’s (NOAA) Winter Outlook report released on Friday confirmed the development of the El Nino for the winter months.
Earlier this month NOAA said the Northern Hemisphere may experience a ‘strong’ El Nino in 2024 with a 1 in 3 chance of it being “historically strong” (Super El Nino).
The disruption in the weather pattern triggered by the El Nino phenomenon has implications for many industries and sectors of the economy, from energy producers to commodities markets to agricultural interests and tourism.
The impact of the super El Nino on countries of the northern hemisphere would also hit global trade which would impact India’s exports as well since the USA and Europe, are its biggest trading partners.
