Europe’s economy is projected to suffer losses of around €113 billion this year. Extreme summer heat has reduced productivity and disrupted business activity across the continent, according to German insurer Allianz. The estimate comes from Allianz’s newly launched Climate Risk Tracker, which combines weather data, damage assessments, and economic modelling to measure the financial impact of climate-related events.
According to Allianz, higher temperatures have led to longer work breaks and increased employee absences during these periods. This is directly weighing on economic output in several European countries. Italy is expected to incur the largest economic loss, with heat-related disruptions costing an estimated €28 billion. Germany follows with €25 billion, while France is projected to lose €20 billion in gross domestic product (GDP).
The insurer estimates that the overall impact will shave just under 0.5 percentage points from Europe’s expected economic growth this year. The findings highlight the growing economic risks associated with climate change. Increasingly frequent and intense heatwaves place pressure on businesses, workers, and national economies across the region.
@ anp | NEWSBRAINPORT
