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Extreme heat threatens jobs, economic growth in South Asia

The report argues that heat should no longer be treated as a seasonal emergency

Update : 30 Jul 2026, 12:56 PM

Extreme heat is costing South Asia nearly the equivalent of 31 million full-time jobs every year and is on track to reduce the region's economy by nearly 7% by 2050, according to a new World Bank report released on Wednesday.

As South Asia prepares to add 280 million working-age people by 2050, rising temperatures are one of the greatest threats to jobs, productivity, and long-term economic growth in the region.

"A Livable Future: Protecting Jobs and Growth from Extreme Heat in South Asia's Cities" finds that by 2070, around 520 million people across South Asia could experience at least one month of dangerous heat each year, four times as many as today. Extreme heat is already reducing labour productivity, disrupting businesses, and jeopardizing the competitiveness of South Asia's cities. It is also putting growing pressure on health systems and critical infrastructure, while hitting low-income households, informal workers, women, the elderly, and children the hardest.

"South Asia's cities are central to the region's future, but rising temperatures are putting jobs, livelihoods, and economic growth at risk," said Johannes Zutt, World Bank Vice President for South Asia. 

"Building heat- resilient cities is not only about protecting people from rising temperatures. It is about safeguarding jobs, boosting productivity, attracting investment, and ensuring cities continue to drive economic growth. By acting now, countries can build more resilient, competitive, and livable cities that create opportunities for future generations."

The report examines extreme heat through the lens of jobs, productivity, and economic growth. It shows how rising temperatures affect workers, businesses, infrastructure, public services, and urban economies. The report argues that heat should no longer be treated as a seasonal emergency. Instead, it should become a core development priority that is integrated into urban planning, infrastructure investment, public policy, and private sector development.

The report provides policymakers with a practical roadmap that can be implemented through existing institutions and financing mechanisms. It recommends investing in heat resilient infrastructure, strengthening Heat Action Plans, protecting vulnerable workers, expanding sustainable cooling, improving early warning systems, and mobilizing public and private investment to build more resilient cities.

This report was prepared with support from the Resilient Asia Program (RAP), funded by the UK Government’s Foreign, Commonwealth & Development Office (FCDO) through its flagship Climate Action for a Resilient Asia (CARA) program. The World Bank’s Global Facility for Disaster Reduction and Recovery (GFDRR) and the City Resilience Program (CRP) also supported the preparation of the report.

“Across South Asia, extreme heat is destroying livelihoods, impacting public health, depressing productivity, and pushing the most vulnerable further into poverty,” said John Warburton, Climate Resilience Lead for Asia Pacific at UK’s Foreign Commonwealth and Development Office. “This is a development crisis that calls for sustained action across sectors. That is why the UK government, through our flagship Climate Action for a Resilient Asia programme, is committed to working with the World Bank and other partners to build knowledge, inform policies, and unlock the investment needs in the region to adapt to a warming planet.”

Many of the solutions already exist. Cities across South Asia are showing how Heat Action Plans, resilient infrastructure, urban greening, early warning systems, and efficient cooling can save lives, protect workers, and reduce economic losses. Scaling these approaches will require stronger institutions, better coordination, and greater public and private investment.

As South Asia continues to urbanize, the choices governments make today will determine whether cities remain engines of jobs, innovation and growth, or become increasingly constrained by rising temperatures. Investing in heat resilience is essential to protect people, strengthen economies, and secure the region's long-term prosperity.

*The South Asia Region includes Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka.

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