Dry conditions in Brazil’s Northern Amazon region could shake the national economy and risk higher inflation.
El Niño, a climate phenomenon, might worsen agriculture and livestock by late 2023 and 2024.
Farmers are worried about the 2024 harvest. Augusto Rocha from CIEAM warns of increased crop failures, especially in seasonal crops like corn and rice.
Consequently, food items may become scarcer. This scarcity could make essential goods more expensive.
Therefore, low-income families might face the brunt of rising inflation.
In addition, the Manaus Free Zone contributes significantly to our economy. It produces a variety of home appliances and electronics.
Moreover, low water levels in the Amazon River are affecting shipping. Boats can’t operate at full capacity.
As a result, the government declared an emergency in 17 towns due to drought.
El Niño is making the drought worse. This weather pattern causes unusual rainfall in the Pacific.
In turn, hot, dry air hampers cloud formation over northern South America.
Additionally, Jose Farias from Sudene notes that energy costs could go up. However, he says this will have a minimal effect on overall inflation.
That’s because the affected areas use little of the nation’s energy.
This year, the Amazon faces its worst water crisis in 43 years. Two factors are to blame: El Niño and warmer North Atlantic waters.
In summary, the North faces tough times ahead. Both the economy and cost of living could suffer due to harsh climate conditions.
Background Amazon Drought
In a local context, this drought is not an isolated event. Past years have seen similar challenges in the Amazon region.
Yet, the current situation is more dire, being the worst in 43 years. Similarly, other regions in Brazil, like Piauí and Bahia, also feel the impact of drought.
On a global scale, climate change makes droughts more frequent. Countries from Africa to Australia are experiencing similar crises.
Such weather patterns can disrupt global food supply chains.
In conclusion, the local situation reflects a larger global crisis that requires immediate and coordinated action.
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