El Niño could hit region’s economies hard

(Kaieteur News) – The prospect of an exceptionally strong El Niño event is raising fresh concerns for Guyana and the wider Caribbean, with the Economic Commission for Latin America and the Caribbean (ECLAC) warning that the climate phenomenon could trigger significant economic losses, higher food prices, pressure on electricity systems and increased poverty across the region.

In a special report released Monday, ECLAC warned that an extreme El Niño could result in a cumulative loss of at least 2% of regional Gross Domestic Product (GDP) over three years, with half of that loss occurring in the first year following the event. The Commission also estimates that declining household incomes could push up to 4.8 million additional people into poverty by the end of the decade, compared with a scenario without El Niño.

For Guyana, the warning comes at a particularly important time as the country grapples with electricity reliability, food security, agricultural production and the need to strengthen climate-resilient infrastructure. The report, led by ECLAC Executive Secretary José Manuel Salazar-Xirinachs, describes the emerging El Niño as potentially historic.