Sean O'Grady: Inclement for the economy, but with some bright spots
Saturday 11 June 2011
A prolonged drought would indeed be bad for the British economy, for two reasons.
First, it would make the inflation spike that is already coming our way even sharper as shortages of items such as potatoes would push their price higher. Some food could be imported to make up for lost domestic production, but that will merely worsen the trade deficit.
Second, the dry weather will put back the economic recovery, already somewhat sluggish. Lost production is the most obvious reason, and in the long hot summer of 1976, for example, some £500m worth of crops were destroyed by the time the rains returned.
Still, agriculture represent only about 2 per cent of GDP, and it would have to take quite a hit to affect things more broadly, although rural areas would clearly suffer.
Conversely, some activities that do better in fine weather, such as construction, pop festivals and trips to the seaside, ought to enjoy a bit of a boost.
- 2 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Cee Lo Green: It is only rape if the victim is conscious
Perez Hilton apologises for publishing Jennifer Lawrence naked 4Chan photos
Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Katie Hopkins breaks down in tears over weight gain challenge: ‘I hate fat people for making me do this’
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£30000 - £45000 per annum + benefits+bonus+package: Harrington Starr: Front-Of...
£700 per day: Harrington Starr: Quantitative Developer C++, Python, STL, R, PD...
£700 per day: Harrington Starr: Java/Calypso Developer Java, Calypso, J2EE, J...
£500 per day: Harrington Starr: SQL Developer SQL, C#, Stored Procedures, MDX...