Extreme Heat Is Hurting South Asia’s Economies. Here’s How Much.

Extreme heat is exacting a heavy economic toll on South Asia, with worker productivity losses and illness-driven workdays being the main contributors, according to recent reports. The World Bank predicts South Asia's GDP could shrink by nearly 7 percent by 2050 if adaptation measures aren't taken. In Bangladesh, outdoor workers are losing about 8.5 percent of their annual income due to heat-induced workdays, while indoor workers suffer 14 working days and 4.5 percent of income loss.

The illness caused by heat and reduced productivity are the primary causes of these workday losses. The report estimates Bangladesh is losing about 0.9 percent of its GDP due to workday losses, which increases with the cost of kidney-related ailments from dehydration. Similar findings are echoed in a July 2026 IIED report, which estimates India's nationwide heat-related kidney problems and reduced work capacity cost the country $78 billion in lost wages, or 1.99 percent of India's GDP in 2024.

Indian informal workers, particularly in outdoor industries like construction, lose about 24 workdays annually due to heat, costing roughly $151 – almost a tenth of their annual earnings. All told, extreme heat in South Asia already subtracts the equivalent of 31 million full-time jobs annually, threatening the job market and labor productivity in the region.

The World Bank report stresses that while individual adaptation may help, rising temperatures will increasingly test the limits of what people can adapt to.