The U.S. is projected to lose 20 per cent of its per-capita gross domestic product by 2050 in a worst-case scenario, with nations closer to the equator or with high-carbon economies even more vulnerable, according to the FTSE Russell report.

Malaysia could see the worst economic hit at 31 per cent. The projections, based on trends of greenhouse-gas emissions and countries’ mitigation efforts, show the risk for investors of long-term bets on sovereign bonds.