Summer heatwaves cost Germany €25 billion

Heatwaves this summer cost the German economy around €25 billion, according to a study by Allianz and Allianz Trade. 

The losses were mainly driven by a drop in productivity linked to intense heat, higher workplace absences and longer breaks. 

A heatwave in late June saw Germany experience record temperatures exceeding 42°C for three consecutive days. Official figures indicate that around 16,000 heat-related deaths have been recorded this year, while the extreme heat also triggered wildfires, damaged crops and lowered river levels, affecting shipping, according to Agence France-Presse (AFP). 

Germany recorded the second-highest absolute heat-related economic losses among the 30 European countries covered by the study, behind Italy at €28 billion and ahead of France at €20 billion. 

Total estimated losses across the 30 European countries reached €113 billion. 

The study also warned of potential economic risks from El Niño, saying the climate phenomenon could cost 144 economies around €392 billion in economic output next year and lead to further increases in food prices in Europe. 

Allianz experts said economic damage linked to climate change is expected to persist in the coming years. 

WAM