Extreme heat is posing a growing threat to Bangladesh's economy, workforce and even homes, with a new World Bank report warning that rising temperatures could significantly undermine productivity and economic growth across South Asia.

The report, A Livable Future: Protecting Jobs and Growth from Extreme Heat in South Asia's Cities, says extreme heat is already costing the region the equivalent of nearly 31 million full-time jobs every year and could reduce South Asia's economy by almost 7% by 2050.

"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, the World Bank's Vice President for South Asia.

Bangladesh is among the countries expected to face mounting economic and social risks as temperatures continue to rise.

The World Bank also noted that Bangladesh has experienced one of the sharpest increases in temperature in South Asia, with Bangladesh registering the second highest increase in the region (1.28 degrees Celsius), trailing only Bhutan (1.45 degree Celcius).

On the economic front, heat-induced productivity losses cost Bangladesh an estimated US$1.3-1.8 billion in 2024 equivalent to 0.3-0.4% of GDP with losses rising sharply on days above 37°C.

An earlier report last year also estimated that heat-related illness resulted in the loss of 250 million workdays in the country in 2024.

For Bangladesh, where millions work in sectors such as agriculture, construction, transport and manufacturing, longer and more frequent heatwaves are expected to reduce working hours, increase health risks and weaken economic output, particularly in cities.

The latest report further said heat stress in Bangladesh's garment factories are linked to increased risk of violence and harassment against women workers unable to meet production quotas.

The new report projects that by 2070, around 520 million people across South Asia, including Bangladesh, could experience at least one month of dangerous heat each year, four times the current number.

It says rising temperatures are reducing labour productivity, disrupting businesses, straining health systems and hitting low-income households and outdoor workers the hardest.

“The combined effect is a regressive pattern: heat falls heaviest on those already most economically vulnerable, and its consequences, such as illness, lost income, and stunted child development, compound the disadvantages those households already face,” the report said.

It chalked out three reasons for this.

First, the jobs available to poor workers — construction, agriculture, street vending, rickshaw driving, waste collection — involve sustained physical labour with high heat exposure and little ability to stop or move indoors.

Second, poor households live in dwellings that offer little protection from heat: informal construction using corrugated metal roofing, thin walls, and inadequate ventilation absorbs heat through the day and releases it overnight, leaving interiors dangerously hot through the hours when the body most needs to recover.

Third, low-income households have the least capacity to absorb heat as a financial shock, with fewer savings, more restricted access to formal credit, and limited recourse to social protection when illness or heat-forced work stoppages cut earnings.

Across South Asia, households with greater asset ownership and formal credit access are considerably more likely to invest in adaptive measures; those without them absorb the full cost, it found.

The impact on health, especially for children, is also alarming.

The consequences extend into early childhood: research in Bangladesh found that exposure to extreme heat during the first 1,000 days of life significantly raises the likelihood of stunting, with implications for long-term cognitive development and labour productivity as well as health.

The report urges governments to treat extreme heat as a long-term development challenge rather than a seasonal emergency.

It recommends expanding Heat Action Plans, investing in heat-resilient infrastructure, improving early warning systems, promoting energy-efficient cooling and protecting vulnerable workers.

It adds that measures such as Heat Action Plans, urban greening, resilient infrastructure and early warning systems have already shown results in parts of South Asia, but scaling them up will require stronger institutions, better coordination and greater investment.