IMF Says Harsh Weather Impacting Global Manufacturing, Agricultural Activities

The International Monetary Fund has warned that high temperatures has impact on economic activities across the globe

The Washington-based IMF said this in its quarterly temperature and sectoral value-added data for a large sample of advanced economies (AEs) and emerging markets and developing economies (EMDEs).

The institution said its report uncovered nuanced effects of temperature on economic activity.

The institution explained that the manufacturing and agricultural sectors are worse hit by hotter spring particularly in the emerging markets and developing economies.

IMF said, “For EMDEs, hotter spring and summer temperatures reduce growth in real value-added of manufacturing, and most significantly, of agriculture, while a warmer winter boosts it.

“For advanced countries (AEs), a hotter spring hurts growth in real value-added of all considered sectors: services, manufacturing and agriculture.

“For both country groups, the negative effect of a hotter spring is larger and more persistent than the positive effect of a warmer winter.

“Furthermore, the adverse impacts of hotter temperatures in advanced economies have accentuated in recent decades. This result suggests increased vulnerability to rising temperatures.”