Westpac warns El Niño may slow GDP growth due to farming impact

Westpac has cautioned that developing El Niño conditions may significantly affect New Zealand's primary sector. The impacts are expected to be particularly hard on pasture-based farming.

Dairy, sheep, and beef farming could face challenges due to these changing weather patterns. Westpac's concerns stem from the historical impact of similar conditions on agricultural productivity.

Farmers may need to adjust their practices in response to potential droughts or irregular rainfall patterns. Reduced pasture growth could lead to lower yields, which in turn may slow overall economic growth in the region.

The primary sector plays a vital role in the country's economy, and any disruptions here could have broader implications. Stakeholders in farming and related industries are advised to prepare for these changes in the environment.

Originally reported by RNZ Environment Headlines.