2023-08-09 10:44:59
(Paris) The recent heat waves might cut global GDP by nearly 0.6 points in 2023, according to an “estimate” by credit insurer Allianz Trade according to which China might lose 1.3 points of growth.
On Tuesday, the European Copernicus service confirmed that July 2023 – marked by heat waves and fires across the world – had been the hottest month on record on Earth. This month of July was 0.33°C warmer than the month which held the record so far (July 2019, which had reached 16.63°C on average).
“In recent months, the United States, Europe, China, and other countries in Asia have faced record temperature increases. […] Climate change will increase the frequency and intensity of extreme heat, creating a “new normal” of heat waves, droughts and fires. Such events not only have an impact on people and wildlife, but also on economies,” Allianz Trade points out in a study published this week.
At the same time, “employees affected by the heat reduce their working hours, experience slowdowns in their tasks and make mistakes. The reduction in productivity at work resulting from extreme temperatures is a well-known phenomenon,” adds the credit insurer.
Cross-checking several available data and studies, Allianz Trade “estimates” that these heat waves “might have cost 0.6 point of GDP in 2023”, “which is important and highlights the weight of climate risks”.
China might see its GDP cut by 1.3 points, according to these calculations, Spain by 1 point, Greece by 0.9 point, Italy by 0.5 point, the United States by 0.3 point and France by 0.1 point.
“A day of extreme heat, exceeding 32 degrees, is equivalent to half a day of strike”, adds Allianz Trade.
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