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Extreme heat could cost Cyprus economy €3.8 billion by 2050, study finds

In-Cyprus · 2026-08-05

AI SUMMARY

• What happened: A study by the Cyprus Institute projects that extreme heat could cost the Cypriot economy up to €3.8 billion by 2050 due to increased health risks and reduced productivity, particularly among outdoor workers. • Why it matters: The findings highlight the urgent economic implications of climate change for Cyprus, emphasizing the need for adaptation measures to protect vulnerable sectors such as construction, agriculture, and tourism. • What to watch next: Policymakers and industry leaders will need to respond to these findings by developing strategies to mitigate the impacts of rising temperatures and safeguard the health and productivity of workers in outdoor environments.

**Extreme Heat Could Cost Cyprus Economy €3.8 Billion by 2050, Study Finds**

A recent study conducted by the Cyprus Institute has projected that extreme heat could lead to cumulative economic losses of up to €3.8 billion for Cyprus by the year 2050. This alarming forecast highlights the increasing frequency and intensity of heat events in Cyprus, which are expected to raise health risks and diminish productivity, particularly for outdoor workers.

The study draws attention to the broader implications of climate change, noting that Cyprus is not alone in facing these challenges. It references an estimate from the Grantham Research Institute at the London School of Economics, which indicated that a heatwave in the UK last June resulted in economic losses exceeding £1 billion. This context underscores the global nature of the climate crisis and its potential economic ramifications.

Researchers at the Cyprus Institute utilized a combination of climate and biological data to assess physical heat stress indicators across various levels of work intensity and sun exposure. The findings suggest that workers in outdoor roles—particularly in sectors such as construction, agriculture, and tourism—are most susceptible to the adverse effects of rising temperatures.

The economic implications of these findings are significant. The study estimates that the lost economic output due to increased heat stress could reach €101 million by 2030, accounting for approximately 0.4% of Cyprus's GDP. By 2050, this figure is projected to rise to €303 million, or 0.7% of GDP. Cumulatively, the economic losses from 2023 to 2050 could range between €2.3 billion and €3.8 billion, representing about 0.5% of the nation’s GDP over that period if no adaptive measures are implemented.

Professor Theodoros Zachariades, one of the authors of the study, emphasized the importance of these findings as the first attempt to quantify the economic damage associated with lost work hours due to extreme heat, using data specific to Cyprus. He noted that while indoor workplaces are generally safeguarded by air conditioning, the increasing intensity and duration of hot days will still have a significant impact on the economy.

Zachariades pointed out that while many European countries may experience greater overall productivity losses due to inadequately adapted indoor workplaces, Cyprus's outdoor workers are particularly vulnerable. He stressed the necessity for adaptation measures to be put in place to monitor and protect the health and performance of these workers.

The study serves as a crucial reminder of the urgent need for proactive strategies to mitigate the impacts of climate change on the economy and workforce. As Cyprus grapples with rising temperatures, it will be essential for policymakers and industry leaders to consider these findings in their planning and decision-making processes to safeguard the economy and the well-being of its workers.

As the effects of climate change become increasingly apparent, the findings of the Cyprus Institute's study may prompt discussions on necessary adaptations in workplace environments, particularly for those in outdoor sectors. The potential economic losses underscore the importance of addressing climate-related challenges to ensure a sustainable future for Cyprus.

Source: In-Cyprus
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