Thursday, April 16, 2009

Economist: Rainfall and GDP - How rainfall can affect economic growth



DEVELOPING countries are more at risk from climate change because of their dependence on agriculture, especially the subsistence sort with poor irrigation. Climate variability has a more severe impact on the economies in which agriculture is a large share of GDP. In Ethiopia, around 75% of the population are dependent on farming, which is almost entirely small-scale and rain-fed. A further 10% earn their living from livestock. During the famine of the 1980s, rainfall was well below average and growth plunged. Whether rainfall is an accurate indicator of GDP growth is another matter, however. This chart from the United Nations appears to show changes in GDP growth preceding similar changes in rainfall in certain years.

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