The heatwaves that struck Europe in 2026 cost approximately €113 billion, with Italy, Germany, and France, the hardest-hit countries, bearing about two-thirds of this amount, according to estimates by the insurance company Allianz on Friday.
The losses incurred by the 30 European countries represent about 0.46 percent of their projected GDP, according to a study conducted by Allianz Trade on the climate economy in 2026.
This study takes into account the costs associated with disaster damage, as well as production losses and pressures on household purchasing power due to global inflation and rising food prices.
Allianz Trade estimated that Italy would bear the brunt of the heatwave, with losses amounting to €27.8 billion, followed by Germany at €25 billion and France at €20.1 billion.
Italy's losses exceed those of Germany, despite its significantly smaller economy, impacting growth by 1.19 percentage points compared to 0.54 points in Germany, the study reported.
Including Belgium (€9.4 billion) and the Netherlands (€9.2 billion), these five economies account for 81 percent of the total.
The insurance company explained that "heat can reduce production without causing visible damage to buildings or equipment," noting that data from the Indian manufacturing sector demonstrates a link between extreme heatwaves and decreased worker productivity, as well as increased absenteeism.
The company predicted that 2027 would be another year of exceptional heatwaves globally, with a strong possibility of becoming the hottest year on record.
The World Meteorological Organization (WMO) predicts that average global surface temperatures will rise between 1.3 and 1.9 degrees Celsius above the 1850-1900 average between 2026 and 2030.
The study also reported that an "extremely severe" El Niño climate phenomenon is already developing and could cost up to US$451 billion globally, equivalent to 0.24 percent of the projected GDP of 144 economies, with the majority of the damage expected to occur in 2027.
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