Europe counts cost as rivers run low and wildfires blaze evacuations
Brutal heat waves strain continent as extremes now become the norm
The costs are mounting for agriculture, tourism, health services, and transport across the European continent. The heat and drought caused low water levels on the Rhine and Danube rivers, bringing severe restrictions on key stretches that have curbed shipping cargo loads and hydropower output.
Rhine disruptions could shave about 0.3 percentage points from Germany's GDP growth this year, according to ING Economics, while analysis by the German insurer Allianz estimated the two-week June heat wave alone will cut the GDP of Europe by a similar amount. It said climate change will shave 5 percent to 7 percent off growth by 2030 for the most exposed economies, including Spain, France and Italy.
Usman said the economic impact of the 2026 heat waves in Europe will be felt years later.
"You'd expect the damage to be largest in the year an extreme event happens and then to fade but we find the opposite," Usman said. "The economic impact grows over the following years because the extreme weather set off a chain of slow economic consequences."
According to estimates published by forecaster AccuWeather, extreme wildfires have caused more than 15 billion euros ($17.3 billion) in economic costs this summer, including damage to crops, property, and infrastructure, as well as firefighting costs, debris removal, and anticipated insurance claims.
