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Look Out New Zealand, Here Comes Another Act of God

  • Droughts in 1998 and 2008 helped send economy into recession
  • Brewing El Nino weather pattern is strongest in 18 years
Updated on

As if a sharp fall in the price of milk, New Zealand’s biggest export, wasn’t bad enough, the country is now bracing for a summer drought that could further hurt farmers and raise the risk of recession.

The most severe El Nino weather pattern in at least 18 years is brewing and set to bring dry winds and below-average rainfall to the South Pacific nation in the months ahead. That will play havoc with dairy farmers and other agricultural producers that together account for a third of New Zealand’s export earnings.