China is currently facing an unprecedented heat wave. With over 36 degrees last week in Shanghai, and even 38 degrees in Shenzhen, it is the hottest May in a century in the country. This second consecutive week of drought has catastrophic consequences for the economy.
The consequences are already clearly visible. Beyond the heat that suffocates the big cities, the countryside is devastated. Spring planting in rice fields is already sunburned, vegetable prices have soared again by more than 20% year on year. In northeast China, the breadbasket of Asia, production is expected to fall and challenge China’s goal of food independence.
Heat wave could cost China 1 growth point
At the same time, several provinces have already limited the supply of electricity to several hundred energy-intensive companies, mainly for aluminum production. This historic heat wave could cost China between 1 and 1.5 points of GDP growth this year.
All the countries in the region are also affected by this exceptional heat wave, from Singapore to Japan via Vietnam. But China is 30 times more exposed than others to climate change, according to a study by 22 international climatologists from the World Weather Attribution (WWA) initiative published in mid-May. It is to blame for its rampant urbanization and its energy bulimia, particularly the highly polluting and CO2-emitting coal.
Source: BFM TV
