The prolonged heat gripping Europe this summer is on course to wipe out a year of economic growth, according to research published by Triodos Bank.
The analysis estimates that the damage caused by extreme heat and wildfires will cost a cumulative €180 billion in 2026, which represents around 1% of GDP. Against expected EU growth of roughly 1.1% this year, that would leave the bloc near stagnation.
The bank traces the damage through four channels, three quantified as EU averages.
Lower crop yields and dairy output, plus the food price rises that follow, account for about 0.15%.
Constrained nuclear, hydro and thermal generation, weaker solar efficiency and higher wholesale power prices add 0.12% to 0.15%, while disrupted rail, road and waterway capacity a further 0.15%.
