When we think of the impact of climate change on the economy, we can see drought images in Africa or caraibas hurricanes. But even in developed economies, it is demonstrated that the warmer summers cause a high price.
The last summers in Europe were one of the hottest of which there is record. In the summer of 2025. What does this mean to the economy?
The heat invites people to leave from home. The beaches are crowded, the pubs gardens overflow and families light the barbecue. Apparently the heat is good for the economy.
According to the British British Retail Consortium Commercial Association, retail sales increased 3.1% in June compared to the same month of 2024 – in line with the increase in average temperatures in the country in these two periods.
This increase in revenue was driven by growth in sales of food, drink and leisure products: From gardening and walking remodeling, the sun often encourages spontaneous welfare spending.
But the hottest summers have disadvantagesexplains the investigators Potanna Emediegwu, Jubril Animashaun and Verónica Vienne Arancibia in an article on.
High temperatures have a great health effectputting people at risk of.
The heat too affects people while working. For those who work outdoors, time can have a severe impact on your health and well-beingif not properly managed.
In people who work in interior spacesa similar phenomenon occurs, since workplaces, such as dwellings, are usually designed to retain heat.
The hottest summers have become such a pressing issue that in the United Kingdom some unions campaign for a maximum temperature established by law of 30 ° C for non -strenuous inner work. Currently, there is only guidance for a minimum temperature of 16 ° C.
Accounting costs
Some industries are more hit by time, not only through their effect on workers, but due to the heat itself.
The hot summer of 2025 made things harder for farmerswho saw the crops of cereals decrease, pastures dry and animals suffer. In some areas, they have been lost up to half of cereal and potato crops, with the harvests arriving two to three weeks earlier than usual.
So are the hottest summers good or bad for the economy?
One conducted by Emediegwu, Animashaun and Arancibia and presented in an article published in April in Oxford Bulletin os Economics and StatisticsIt has examined more than two decades of local economic data throughout the UK and confronted them with seasonal temperatures.
The results of the study allowed to conclude that a increase of only 1 ° C in summer temperatures Reduces British economic growth in about 2.4%.
In practical terms, this means that Even a modest increase In the average summer heat can remove thousands of € to the economy.
But why does this happen?
Hot summers disturb work and production. Companies can see more low employees due to thermal stress and related diseases. THE productivity In offices, factories and farms often decreases when workers fight higher temperatures.
The study also shows that The agricultural sector is especially vulnerable. Hot and dry summers damage cultures and cattleand since much of the UK’s general culture and dairy farming is concentrated in the south of the country, this area supports the weight of economic losses.
Researchers also found that the impact of hot summers is not evenly distributed across the country. The richest municipalities (those with an annual GDP higher than the national average income) They are actually more vulnerable.
The study also found evidence that Energy Use Standards They are important. During hot summers, electricity consumption decreases compared to other stations.
Although this decrease may seem positive, it is a clear sign of a reduction of industrial activity, offices closedor changes in work patterns that impair economic growth.
The conclusion of the study is clear: hot summers are not only uncomfortable, They are economically expensive. Prepare for warmer summers is not just an environmental issue, It is an urgent economic priority.
