Germany heatwaves cost economy €25bn, Allianz says

Heatwaves this summer cost Germany's economy around 25 billion euros, insurers Allianz and Allianz Trade said in a study published Thursday.

The study said the losses were driven mainly by lower productivity during intense heat, higher workplace absences and longer breaks, with limited access to air conditioning adding to the effect.

Germany recorded an all-time temperature record in late June, topping 42 degrees after three consecutive record-breaking days. Official data point to a record of around 16,000 heat-related deaths in Germany this year.

Europe's biggest economy also faced wildfires, serious effects on harvests and lower river levels that restricted important navigation routes.

Allianz chief executive Frank Sommerfeld said heat is “a risk that is often underestimated” and strains people, infrastructure and the economy while worsening hazards including drought, wildfires and extreme weather.

In absolute terms, the study said Germany was the second hardest-hit European country by heat-related economic losses, behind Italy at 28 billion euros and ahead of France at 20 billion euros. Across 30 European countries, total losses were estimated at 113 billion euros.

The study also warned of risks linked to El Nino, a climate phenomenon tied to unusual warming of Pacific Ocean surface water that can shift rainfall patterns. It said the 2026-27 El Nino, forecast by the World Meterological Organization to be the largest in at least 1,000 years, could cost 144 economies nearly 392 billion euros next year and push food prices higher in Europe.

Allianz climate economist Hazem Krichene said nearly 60 percent of the estimated gross losses would be borne by China, the United States and India.