From tourism to power generation and productivity, Europe feels economic cost of heatwaves
Low river levels have stalled German freight traffic and forced closure of nuclear plants in France
TL;DR
- Heatwaves are estimated to cost the EU €180 billion in GDP, with the UK economy losing £4.4 billion by the end of July.
- Productivity declines when temperatures exceed 30C.
- France faces reduced nuclear power output due to high river temperatures, impacting energy supply and prices.
- Germany's economy is threatened by low water levels in the Rhine, disrupting critical freight transport for coal, oil, and gas.
- Spain has suffered extensive wildfire damage, but its tourism sector has shown resilience.
- Italy, reliant on tourism and agriculture, is exposed to significant losses, with estimates of €20 billion in agricultural damages over four years.
- Poland has experienced fewer hot days but still faces challenges with river levels affecting power plants and grid operations.
- The long-term effects of heatwaves could exacerbate existing economic challenges, such as high public debt and an ageing population.