This study investigates the economic impacts of climate change by integrating climate models with empirical dose–response functions to assess the effects of temperature, precipitation, and extreme weather events on global GDP. The research shows that at +3°C global warming, global economic losses reach 10% of GDP, with the highest impacts in poorer, low-latitude countries. While annual temperature changes are the primary driver of economic damage, incorporating variability and extreme events increases global losses by nearly 2 percentage points and exacerbates economic tail risks. These findings highlight the importance of considering climate variability and extremes in climate damage projections to better understand and mitigate climate change impacts. The study compares the economic impacts of six climate indicators: annual temperature, annual precipitation, and four related to variability and extremes. It finds that annual temperature changes account for the majority of GDP losses at +3°C, but variability and extremes contribute significantly, especially in lower latitude regions. The inclusion of these factors increases global economic losses and highlights the need for region-specific risk assessments. The research also examines the distribution of GDP impacts across different countries, revealing that the Global South is more vulnerable to climate change. While annual temperature damage partially captures heat wave impacts, variability and extremes introduce additional uncertainties, particularly for low-income countries. The study emphasizes the importance of considering these factors in climate models to improve the accuracy of economic damage projections. Overall, the study underscores the need for a more comprehensive approach to climate change impact assessments, incorporating not only temperature but also precipitation variability and extreme events. This approach is crucial for informing climate policy and adaptation strategies, as it provides a more accurate picture of the economic risks associated with climate change. The findings suggest that current climate models may underestimate the true economic impacts of climate change, particularly in vulnerable regions, and that future research should focus on improving the integration of climate variables in economic damage assessments.This study investigates the economic impacts of climate change by integrating climate models with empirical dose–response functions to assess the effects of temperature, precipitation, and extreme weather events on global GDP. The research shows that at +3°C global warming, global economic losses reach 10% of GDP, with the highest impacts in poorer, low-latitude countries. While annual temperature changes are the primary driver of economic damage, incorporating variability and extreme events increases global losses by nearly 2 percentage points and exacerbates economic tail risks. These findings highlight the importance of considering climate variability and extremes in climate damage projections to better understand and mitigate climate change impacts. The study compares the economic impacts of six climate indicators: annual temperature, annual precipitation, and four related to variability and extremes. It finds that annual temperature changes account for the majority of GDP losses at +3°C, but variability and extremes contribute significantly, especially in lower latitude regions. The inclusion of these factors increases global economic losses and highlights the need for region-specific risk assessments. The research also examines the distribution of GDP impacts across different countries, revealing that the Global South is more vulnerable to climate change. While annual temperature damage partially captures heat wave impacts, variability and extremes introduce additional uncertainties, particularly for low-income countries. The study emphasizes the importance of considering these factors in climate models to improve the accuracy of economic damage projections. Overall, the study underscores the need for a more comprehensive approach to climate change impact assessments, incorporating not only temperature but also precipitation variability and extreme events. This approach is crucial for informing climate policy and adaptation strategies, as it provides a more accurate picture of the economic risks associated with climate change. The findings suggest that current climate models may underestimate the true economic impacts of climate change, particularly in vulnerable regions, and that future research should focus on improving the integration of climate variables in economic damage assessments.