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Heat Waves Could Cost the EU 1% of GDP, Dutch Bank Says
Triodos said weaker labour productivity and lower agricultural output could wipe out most of the EU's expected 2026 growth.
- Dutch bank Triodos reported Saturday that extreme heat and drought across Europe could erase around 1% of the European Union's gross domestic product, equivalent to roughly $208 billion in economic losses this year.
- Weaker labor productivity drives the bulk of these losses, while agricultural output faces declines of 3% to 7% due to the heat, Triodos noted in its report.
- France is expected to be the hardest hit, with higher food prices, constrained power generation, and disruptions to rail and inland waterways reducing GDP by around 1.4% and potentially causing annual contraction of 0.6%.
- Energy system disruptions have spread to central and eastern Europe, forcing cuts to nuclear and hydropower generation while driving diesel refining margins toward 20-year highs amid persistent drought conditions.
- These losses threaten to wipe out most of the European Union's expected growth for 2026, which the European Commission forecast at 1.1% and the IMF expects to reach around 0.9% amid ongoing energy shocks.
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34 Articles
34 Articles
Record-breaking summer to cost EU economy €180 billionRecord-breaking heatwave in the EU is set to cost the economy €180 billion, or 1% of GDP. Productivity and agriculture will be hit hardest.
·Kyiv, Ukraine
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Heatwaves, droughts, and wildfires affecting Europe this summer will impact the European Union's growth this year. This is according to a recent study published by the Dutch sustainable bank, Triodos. Economists expect the European Union's gross domestic product to decline by approximately 1%, representing an economic loss of €180 billion.
·Issy-les-Moulineaux, France
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Heat and drought could undo the already low growth in the EU.
·Munich, Germany
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Total News Sources34
Leaning Left5Leaning Right7Center4Last UpdatedBias Distribution44% Right
Bias Distribution
- 44% of the sources lean Right
44% Right
L 31%
C 25%
R 44%
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