A worsening of drought conditions in Australia could put market forecasts for economic growth at risk warns Citigroup, wiping more than half a percentage point from GDP growth in 2018-19 assuming the economy experiences a 20 per cent fall in farm production.
There is no El Nino at the moment but the chances are rising, from NOAA:
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
