The devastating impact of extreme heat on the economy: consequences beyond the physical

The impact of extreme heat on the economy has been devastating, with consequences that go beyond the physical to directly affect the financial stability of different regions. The recent record temperatures in areas such as Mexicali, Mexico, and Death Valley in California have raised alarms about the effects on productivity and the prices of basic foods. In the case of Mexico, inflation has increased worryingly, especially in the prices of fruits and vegetables, which have experienced a steady rise in recent months. According to official data, food prices have increased on average by 6.58%, directly impacting the cost of living for the population. This escalation in prices is directly related to the extreme heat conditions that have affected agricultural production. On the other hand, in California's Imperial Valley, farmers have managed to adapt to hot summers by carefully selecting crops that can withstand high temperatures. However, the uncertainty about the water supply from the Colorado River poses an uncertain future for this region, which depends heavily on agriculture. The economic impacts are felt not only in agricultural production but also in the health and productivity of workers, both in the field and in urban environments. Extreme heat has led to an increase in heat-related deaths, as well as disruptions in labor productivity due to adverse conditions. According to experts such as Armando Sánchez, director of the Institute of Academic Research at UNAM, the economic consequences of heatwaves could contract the agricultural sector's GDP by 3% annually. Drought, water scarcity for irrigation, and workers' exposure to heat are just some of the factors contributing to this negative impact on the economy. Furthermore, climate change poses additional challenges, as projections indicate that economic losses resulting from extreme phenomena such as heat islands could exceed one billion dollars annually in cities like Mexico City, Guadalajara, and Monterrey. These data highlight the urgency of implementing public policies for climate change adaptation and mitigation of its effects. In this context, the need to take concrete measures to address the economic impact of extreme weather becomes imperative. Farmers, businesses, and authorities must collaborate in implementing sustainable practices to mitigate the negative consequences on the economy and society as a whole. Adapting to this new climatological reality presents an unavoidable challenge that requires coordinated and effective actions at the local and international levels.