economy
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.