Italy, Germany and France accounted for around two-thirds of the losses, as extreme heat weighs on production and economic growth.
Heatwaves that hit Europe in 2026 cost around €113 billion, with Italy, Germany and France, the worst-affected countries, accounting for roughly two-thirds of the total, according to estimates released by insurance company Allianz on Friday.
The losses incurred by the 30 European countries amounted to around 0.46 percent of their projected gross domestic product, according to a study by Allianz Trade on the climate economy in 2026.
The study takes into account costs related to disaster damage, as well as production losses and pressure on household purchasing power resulting from global inflation and rising food prices.
The sandy banks revealed by the receding waters of the Danube River (AFP).
Allianz Trade estimated that "Italy bears the heaviest burden at €27.8 billion, followed by Germany at €25 billion and France at €20.1 billion."
Italy's losses exceed those of Germany despite its economy being significantly smaller, with the impact on growth reaching 1.19 percentage points, compared with 0.54 percentage points in Germany, according to the study.
With the addition of 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 India's manufacturing sector show a link between severe heatwaves and declining worker productivity, as well as increased absenteeism.
The company expects that "2027 will be another year of exceptional heatwaves globally and is highly likely to become the hottest year on record."
The World Meteorological Organization expects average global surface temperatures between 2026 and 2030 to be between 1.3 and 1.9 degrees Celsius above the 1850–1900 average.
The study also reported that the "extreme" El Niño climate phenomenon is already developing and could cost $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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