Europe’s Summer of Extreme Weather Caused €43 Billion in Losses

Europe’s Summer of Extreme Weather Caused €43 Billion in Losses
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A new analysis has found that the extreme weather that struck Europe during the summer of 2024 resulted in short-term economic losses of at least €43 billion, The Guardian revealed. This figure, caused by heatwaves, droughts, and floods, is estimated to be 0.26% of the European Union’s total economic output for 2024.

According to research from economists at the University of Mannheim and the European Central Bank, these costs are projected to increase to €126 billion by 2029. The nations most affected by the economic damage, with losses exceeding 1% of their gross value added, include Cyprus, Greece, Malta, and Bulgaria, followed by other Mediterranean countries such as Spain, Italy, and Portugal.

The analysis is considered “conservative” as it does not account for the impact of wildfires or the combined effect of multiple extreme weather events occurring simultaneously. The study did, however, use historical data to estimate indirect economic impacts, such as reduced work hours due to heat or supply chain disruptions from flood-damaged infrastructure. Experts cited in the analysis, including those from the World Bank and the National Bank of Belgium, highlighted the importance of focusing on these hidden costs, as they are often larger and more lasting than direct damages alone.