Drought On Economy

Impacts of Drought On Economy

The effects of drought can be found in food shortages due to low cultivation. This can result in low production and it affects the GDP. The Gross Domestic Product is the measure of all the final goods and services produced during a year. Sri Lanka being primarily an economy with high dependence on agriculture there is an inevitable lessening of the above figures as there is a direct connection between the productivity of agriculture and the reverse of a drought condition which is plentiful of rain increasing production. The following figure shows the relationship between the two factors. The hardest hit year in modern times will be 2013 however the dip in the GDP has had a consistent run when compared to the rainfall estimates in the next few years.

Figure 11: Relation between the Quarterly Rainfall and GDP Growth % at a Constant Price