MoneyWorks4Me

Households in Asia-Pacific region susceptible to El Nino-driven shocks: S&P Global Ratings

10 Aug 2026 Evaluate

The rating agency ‘S&P Global Ratings’ has pointed out that the Asia-Pacific economies, like India, Vietnam, Indonesia and the Philippines, are experiencing price increases with households being highly vulnerable to further weather-related supply shocks, including those triggered by the El Nino. It added that the effects of the El Nino period starting in 2026 will reach Asia-Pacific mainly through weaker rainfall and climate disruption, and the macroeconomic impact is likely to be manageable. S&P Global Ratings pointed that the impact of El Nino will primarily transmit through reduced agricultural output, higher food inflation, diminished hydropower generation, and vegetation fires and haze.

Last month, the World Meteorological Organisation (WMO) had said that strong El Nino conditions were developing and is expected to strengthen during August through October, bringing powerful weather events around the world. S&P noted that this could result in above-normal temperatures worldwide. Besides, South and Southeast Asia are among the more vulnerable regions globally to El Nino. Lower rainfall associated with the climate phenomenon will raise food prices and disrupt water-intensive industries.

Nevertheless, S&P said that proactive policies like shifting to water efficient crops, maintaining higher grain reserves, and improved water management, along with a declining role of agriculture, would limit damage caused by El Nino. It added that many economies have expanded food buffer stocks, improved import planning and strengthened market management mechanisms to cushion supply disruptions. At the same time, investments in reservoir management, irrigation infrastructure and water governance have strengthened resilience to periods of reduced rainfall.  On India, it noted that strong food and grain buffers for affected crops as of July 2026 are key to managing food shock. Further, authorities are enforcing district-level coordination with farmers to minimise crop losses.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: