Europe heatwaves cost 113 billion euros in 2026

Heatwaves across Europe in 2026 resulted in an estimated 113 billion euro economic loss, according to a study by Allianz Trade. These losses represent approximately 0.46% of the combined projected GDP of 30 European countries.

The financial impact includes direct physical damage, reduced production, and decreased household purchasing power due to food and global inflation. Italy faced the highest burden at 27.8 billion euros, followed by Germany at 25 billion euros and France at 20.1 billion euros. When including Belgium (9.4 billion euros) and the Netherlands (9.2 billion euros), these five nations account for 81% of the total European cost.

Beyond physical damage, the study notes that extreme heat can reduce productivity and increase worker absenteeism without causing visible damage to infrastructure. Looking ahead, the insurer warns that 2027 could be the hottest year on record, while the World Meteorological Organization predicts average temperatures between 1.3 °C and 1.9 °C above pre-industrial levels for the 2026-2030 period.