Allianz has reported that Europe’s economy incurred an estimated loss of €113 billion ($128.5 billion) this year due to extreme summer heat, which impacted productivity and output. Italy faced the largest losses, totaling around €28 billion, followed by Germany with €25 billion and France, which saw a €20 billion reduction in gross domestic product.
Read More
These losses were driven by decreased production linked to lower labor productivity, longer breaks, and absences during periods of extreme heat. Overall, the impact is projected to account for nearly 0.5% of this year's expected economic output across Europe.
These findings are part of Allianz's newly introduced Climate Risk Tracker, which integrates weather and damage data with forecasts of economic implications. Additionally, Allianz estimated that Germany suffered €50 billion in damages over the past five years from storms, floods, and other natural disasters. Annual losses in Germany have been approximately double those recorded between 2000 and 2019, while global natural disaster losses increased by 54%.
Frank Sommerfeld, head of Allianz's German property insurance division, emphasized that Germany is significantly affected by climate-related damages. Allianz also cautioned about potential further economic risks from the El Niño phenomenon next year. Should 2027 experience another unusually warm year due to El Niño, economic output in the 144 countries analyzed could decline by €392 billion, with China anticipated to face the most substantial losses.