the recent heat waves registered in the world could take away from the Gross Domestic Product (GDP) about 0.6 points in 2023, warns an “estimate” by the insurer Allianz Trade, which indicates that China could lose even 1.3 points of growth.
The European Copernicus Observatory confirmed on Tuesday that July 2023 was the hottest month ever recorded on Earth, with 0.33C more than the previous record set in July 2019. The month was marked by heatwaves and fires across the planet. .
“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 episodes of extreme heat, and create a ‘new normal’ made of heat waves, drought and fires,” warned Allianz Trade.
“Events like these not only have an impact on people and wildlife, but also on economies,” he stressed in a study published this week.
The credit insurer added that “employees affected by the heat reduce their work hours, slow down their tasks and make mistakes. Reduced productivity at work due to extreme temperatures is a well-known phenomenon.”
In its study, Allianz Trade uses various available data and analysis and “estimates” that these heat waves “could have cost 0.6 points of GDP in 2023.”
According to these calculations, China could see its GDP cut by 1.3 points, Spain by 1 point, Greece by 0.9 points, Italy by 0.5 points, the United States by 0.3 points and France by 0.1 points.
Source: Larepublica
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