El Niño phenomenon, triple impact on the economy of Ecuador

Between 1997 and 1998 Ecuador experienced the force of nature, two years before the financial crisis that led to its dollarization.

Flooded homes, destroyed roads and water running from side to side of the roads were the scenes that resulted in economic losses (14, 5% of the GDP).

The phenomenon also affected the fishery resources according to the Guayaquil scientist Roberto Jimenez Santistevan, who has a 35 years research experience in biological and fisheries oceanography.

If the event that is expected for this year is similar to the previous one, it would be catastrophic, says Geronimo Sosa, breeder and farmer, referring to Balzar (a lower zone of Guayas). He mentions places like Chicompe, where “there are no prevention works and roads repaired by the Council.”

Sosa makes his calculations: with reference to milk, it would not be possible to mobilize 6000 liters per day, which will leave $ 3,360 in losses at the current price of $ 0.56 per liter. Cocoa, corn, and rice are on the affected list.

Agriculture will be most affected, as in the previous Niño: banana exports decreased by 257 million (19.3%) throughout 1998, compared to 1997; coffee fell from $ 91 million to $ 71 million; cocoa, from $ 59 to $ 18 million.

Sources: http://expreso.ec/expreso/plantillas/nota.aspx?idart=8169408&idcat=38269&tipo=2