According to the international financial think tank IMF, the global economic impact of increasing drought and declining agricultural productivity is significant. The economic consequences will be felt throughout the entire food chain, from farmers to consumers. Higher food prices due to reduced yields will primarily affect poorer populations. This will lead to increased food insecurity and could also exacerbate social unrest in some countries.
The persistent drought in Southern Europe is causing lower crop yields and has driven food prices up, especially for vegetables and fruit. Spain is already facing failed harvests and decreasing water reserves. Spanish farmers say the drought has had a disastrous effect on their incomes and they are asking for government support to cope with the consequences.
In Spain, farmers have already begun warning about the consequences of the drought. In recent years, Spain has experienced decreased rainfall and higher temperatures, putting pressure on agricultural production in the country. This has resulted in reduced production of vegetables and fruit, such as asparagus, which is an important export product for the country.
Spanish farmers expect production to fall by 20-25% this year due to the persistent drought, which could have economic repercussions for the country and for the prices of these products worldwide.
But the problem is not limited to Spain. Other EU countries such as Italy are also feeling the effects of the drought. Italy recently adopted an emergency decree to tackle the severe water crisis. The decree includes measures such as using wastewater for crop irrigation and banning non-essential water use in urban areas.
The emergency decree that Italy recently adopted to combat the drought comes at a crucial time. The country has been struggling for years with decreased agricultural production due to climate change. The drought of recent years has only worsened the situation and has led to crop losses and even drying up of springs and rivers.
This situation has also raised concerns about food prices in Italy. The agricultural sector is an important economic sector and the production of vegetables and fruit is of great importance to the Italian economy and food supply. If the drought continues and harvests keep failing, prices of these products may rise, which could lead to economic consequences for the Italian population.