The Surprising Impact of Extreme Heat on the UK Economy—New Challenges Brought by Climate Change

In 2025, the UK experienced the hottest summer on record, with the frequency of heatwaves significantly increased due to anthropogenic climate change. According to research, a 1°C rise in average summer temperature results in a roughly 2.4% decline in economic growth rate. Although there is a temporary "heatwave boom," the negative impacts such as decreased labor productivity, increased healthcare burdens, reduced agricultural yields, transportation delays, and overheating of homes outweigh the benefits. In reality, retail sales rebounded by +3.1% year-on-year in June and August, but the sustainability of this trend is questionable. In agriculture, losses in grains and potatoes reached up to 50%, with harvests occurring earlier than usual. Railways imposed speed restrictions as a norm due to high temperatures. About one-fifth of homes in England overheated, with future high-risk projections at 36%. Overheating in London was more pronounced than in other regions. On social media, while the BRC emphasized increased sales, labor unions demanded a legal maximum workplace temperature. "Coolness" has become a new factor of production, making passive measures, institutional updates, and priority investments in vulnerable groups urgent necessities.