"These numbers are very, very difficult to calibrate. I estimate right now that the drought is costing North Carolina in aggregate at least half a billion dollars," says Dr. Walden, a North Carolina Cooperative Extension specialist at N.C. State University.

"Now you can see the biggest impact and, indeed, I think it's easiest to estimate the drought on agricultural interests. In 2002 when we had a drought, it's estimated that that drought cost farmers in the state over $400 million," he says. "So, for example, my half a billion number may be low for this year.

"And it's obvious because farmers depend on adequate rainfall in order to produce their crops. Also if you have a drop in crop production, that can impact the livestock industry because the livestock industry in many cases depends upon these crops as feed," he adds. "Another big loser in the drought is the green industry -- nurseries and others related to landscaping. That industry is now estimated to be an $8 billion industry in the state, and so if there's any slowdown in economic activity there that can also have a major detrimental effect on the state’s economy.

"I think the bigger concern right now that I hear discussed is perhaps not so much about this year's drought, and of course it's important, but whether this is going to be part of a trend -- whether we are entering into a phase of warmer drier weather for this region," Walden concludes. "That could have clearly major economic consequences."