Study: Heatwaves cost Europe €113 billion this year

The cost of the heatwaves that struck Europe in 2026 reached approximately 113 billion euros, with Italy, Germany, and France—the most affected countries—bearing about two-thirds of this amount, according to estimates by insurance company Allianz released on Friday.

The losses incurred by the 30 European countries represented approximately 0.46% of their expected gross domestic product (GDP), according to a study by Allianz Trade on the climate economy in 2026.

The study takes into account costs associated with disaster damage, as well as productivity losses and pressures on household purchasing power resulting from global inflation and rising food prices.

Allianz Trade estimated that “Italy bears the largest burden at 27.8 billion euros, followed by Germany at 25 billion euros, and then France at 20.1 billion euros.”

Italy’s losses exceed those of Germany, despite its significantly smaller economy, as the impact on growth reaches 1.19 percentage points compared to 0.54 percentage points in Germany, the study noted.

The insurance company explained that “heat can reduce productivity without causing visible damage to buildings or equipment,” noting that data from India’s manufacturing sector demonstrates a link between severe heatwaves and decreased worker productivity, as well as increased absenteeism.

The World Meteorological Organization (WMO) expects the average global surface temperature to rise between 2026 and 2030 by between 1.3 and 1.9 degrees Celsius above the 1850–1900 average.

Additionally, the study reported that an “extremely strong” El Niño climate phenomenon is already developing, with its global cost potentially reaching 451 billion US dollars, equivalent to 0.24% of the expected GDP of 144 economies, with “most of the damage expected to occur in 2027.”