Extreme heat stripped Bangladesh of an estimated $1.3 billion to $1.8 billion in productivity during 2024, equivalent to 0.3% to 0.4% of the nation's gross domestic product, according to a new assessment by the World Bank.
The report highlights that economic losses accelerate sharply on days when temperatures exceed 37°C, with the capital city of Dhaka alone losing approximately 465,000 jobs due to heat-induced work disruptions.
The findings underscore the growing macroeconomic drag of climate stressors on South Asia's emerging markets.
For investors monitoring regional stability, the data quantifies a tangible risk to labor-intensive sectors, particularly manufacturing and construction, where outdoor work is prevalent.
The job losses in Dhaka signal a direct hit to urban consumption and output capacity, factors that weigh on near-term growth projections.
This development adds to a series of challenges for Bangladesh's economy.