Environmental sensitivity of the Caribbean economic growth rate

Description:

The year-on-year changes in economic growth on the islands of the Caribbean Antilles demonstrate sensitivity to weather conditions. Daily surpluses of wind and rain caused by temporary storms are negatively related to gross domestic product (GDP). The field regression of the GDP time series from 1971 to 2022 for Puerto Rico and the neighboring islands of the Antilles reveals links with sea temperature in the eastern Pacific. In the composite analysis, an inverted zonal atmospheric circulation emerges over the equatorial Atlantic. Alternating approximately every 7 years, it modulates weather events and economic prosperity in the Caribbean. A multivariate algorithm is developed to predict changes in the annual GDP growth rate. The most influential predictor is precipitable water in the equatorial Atlantic one year earlier. The reduction in humidity superimposed by westerly winds on a global bottleneck at 5° S—5° N, 20—40° W tends to suppress Caribbean storms, leading to economic prosperity in the following year. Statistical methods and strategies for risk reduction are presented.

Objective:

Analyze the relationship between weather conditions (wind and precipitation) and annual economic growth (GDP) in Caribbean islands, including Puerto Rico, based on sensitivity to atmospheric phenomena.

Main Variables
economic growth, gross domestic product, Caribbean Antilles Islands
Frequency of release of the report:
Reference Population:
Caribbean Antilles Islands, including Puerto Rico.
Product:
Environmental sensitivity of the Caribbean economic growth rate
History:
This product contains no history.
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