The report has been released by the Organisation for Economic Co-operation and Development (OECD).  

Key findings

• Increase in severity: 40% of the world’s land area faces increasingly frequent and severe droughts.
  • Some of the recent examples of major droughts include Europe (2022), California (2021), Horn of Africa & Somalia, etc.
• Economic impact: 3% - 7.5% annual increase in the economic cost of an average drought episode. 
  • Countries like India, Australia, etc.  may face water-related disruptions in the operations of hydroelectric power stations.
  • Inland water transport is impacted (E.g. recent drought in panama canal). 
  • Crop yields can decline by up to 22%.
• Ecological:
  • Reduction in soil moisture: Since 1980, 37% of global land has experienced significant soil moisture decline.
  • Groundwater decline: Groundwater levels are falling globally, with 62% of monitored aquifers in decline.
• Other: 
  • Droughts are responsible for 34% of disaster-related deaths (World Meteorological Organization (WMO), 2021) and exacerbate poverty, inequality and displacement.