Danube drought could cause 16.5 billion euro economic loss

Unprecedentedly low water levels in the Danube River could result in economic losses of up to 16.5 billion euros for riparian nations, according to an analysis by the Dutch bank Triodos.

Independent sources estimate these losses could represent approximately 1% of the combined GDP of the affected countries, which include Austria, Slovakia, Hungary, Croatia, Romania, Bulgaria, and Serbia. The total GDP for the first six nations is estimated at 1,560 billion euros for 2025, rising to 1,650 billion euros when Serbia is included.

The economic impact is expected to stem from several key sectors. Agricultural production is projected to decline by between 3% and 7%, alongside a 0.6% decrease in labor productivity. Additionally, the drought affects energy production due to lost megawatts from nuclear plants along the river and high electricity exchange prices. The transport sector is also facing significant challenges, with companies suffering from increased tariffs and forced reductions in vessel tonnage by one to two-thirds.