A rough estimation indicates that the recent heatwave across the United States, Southern Europe, and China might have resulted in a GDP reduction of 0.6 percentage points in 2023. The economic impact varies, with France experiencing a 0.1pp decrease, while China’s GDP may have been affected by 1.3pp. It is worth noting that one day of extreme heat (above 32 degrees) is equivalent to half a day of strike.
The key lies in adaptation. In the short term, implementing warning and prevention measures can be effective. However, to prepare for the long-term effects of climate change, cities should focus on structural adaptation measures, such as urban greening. Additionally, workplaces should also be adapted to cope with increased heat stress, involving modifications to buildings, infrastructure, and working hours.
Learn more here: https://www.allianz.com/en/economic_research/publications/specials_fmo/global-heatwave-implications.html
