The world is facing an alarming surge in drought risks, with the total land area affected by drought doubling over the last 120 years, according to a new report from the Organisation for Economic Co-operation and Development (OECD). The cost of droughts is also expected to rise sharply with an average drought in 2035 projected to cost at least 35% more than today.
The OECD Global Drought Outlook: Trends, Impacts and Policies to Adapt to a Drier World reveals that climate change is the primary driver behind the worsening frequency and intensity of droughts. Nearly 40% of the planet has experienced more frequent and severe droughts in recent decades, threatening not just agriculture but also trade, energy production, and industry.
“Co-ordinated policy action across levels of government, sectors and countries is needed to respond to growing drought risks and mitigate impacts on food security, health, energy, transport, agriculture, peace and security,” said OECD Secretary-General Mathias Cormann. He stressed that sustainable water, land, and ecosystem management are key to reducing vulnerability and cushioning economies from future shocks.
The report paints a sobering picture: since 1980, nearly 37% of global land has seen significant soil moisture loss, while 62% of aquifers which supply over three-quarters of global freshwater withdrawals have experienced declining groundwater levels since 2000. Drought’s human toll is equally troubling, contributing to disaster-related deaths, poverty, inequality, and displacement.
Beyond agriculture, droughts disrupt industrial output, energy supply chains, and trade flows, showing that their impact stretches across multiple sectors. Without immediate, comprehensive adaptation strategies, these disruptions could intensify, affecting economies worldwide.
But the report also points to solutions. Wider adoption of water recycling, rainwater harvesting, drought-tolerant crops, and efficient irrigation systems could drastically reduce water consumption and improve resilience. In addition, sustainable land use and ecosystem protection are seen as critical defenses against worsening drought conditions.
The OECD warns that proactive adaptation measures — such as incentivizing drought-resilient farming, tightening water-use regulations, and investing in ecosystem restoration — are essential. Not only could such steps reduce drought damage, but they could also improve overall economic performance in an increasingly water-scarce world.
The message is clear: without swift, system-wide change, drought risks will escalate — but with innovation and action, the worst outcomes can still be avoided.