El Niño triggers economic and agricultural crisis across Latin America

The El Niño climate phenomenon is causing significant economic and agricultural disruption across Latin America. In Colombia, the livestock sector has already suffered losses totaling $95,065 million between June and September, resulting in over 19,000 animal deaths and the displacement of more than 511,000 animals. Experts from Anif warn that the phenomenon could add 60 to 70 basis points to Colombian inflation due to rising food and energy costs.

The United Nations, through the Economic Commission for Latin America and the Caribbean (ECLAC), has issued warnings regarding the broader regional impact. ECLAC estimates that an extreme El Niño event could cause a decline of at least 2% in the region's GDP over three years and push up to 4.8 million more people into poverty by the end of the decade. Specific country projections include a potential 4.1 percentage point reduction in Peru's GDP growth and significant impacts in Ecuador and Colombia.

In Honduras, rising fuel and food prices, exacerbated by droughts and floods, are expected to increase costs for families during the holiday season. The climate event is creating a volatile economic landscape characterized by food insecurity, energy supply strain, and increased inflationary pressure across multiple nations.