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The Conversation
The Conversation
Stephen Bartos, Professor of Economics, University of Canberra

How drought in Central America is pushing up the cost of living in Australia

United States Drought Australia America Central America the Panama Canal Panama Panama Canal the Panama Canal Authority
AAP

What does a drought in Central America have to do with Australia’s cost of living? Quite a lot, if the drought affects the Panama Canal.

The 425 square kilometre Gatun Lake was built in the early 1900s to store water for the Panama Canal. Water is needed to float ships so they can navigate the canal. Now drought has severely affected the lake’s water levels.

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