According to a report by AFP on September 24th, a study released by the Allianz Group in Germany today indicates that heatwaves this summer are expected to cause economic losses of approximately 25 billion euros for Germany. The high temperatures have led to a decline in labor productivity, and the lack of cooling equipment such as air conditioners has further exacerbated the impact.
The report indicates that affected by the heat waves, Germany's economic growth rate this year is expected to be reduced by approximately 0.54 percentage points, which is equivalent to about 0.53% of the country's annual gross domestic product.
On June 19, 2026, local time, in Berlin, Germany, the city faced high temperatures. Citizens and tourists sought relief from the heat by enjoying the decorative fountains in public spaces of the city. IC Photo
Allianz points out that the impact of high temperatures on the economy is not just reduced crop yields or damage to infrastructure. Under hot weather conditions, employees' work efficiency decreases, requiring more frequent and longer breaks. Some people also miss work due to physical discomfort. The resulting loss of working time and productivity ultimately affects economic output.
The report specifically mentioned that many workplaces in Germany lack effective cooling facilities such as air conditioners, which makes them more vulnerable to high temperatures. Allianz believes that companies investing in air conditioners and other cooling equipment can mitigate the impact of heatwaves on production efficiency.
Throughout Europe, the economic losses caused by the extreme heat this summer are estimated at approximately 113 billion euros. Among European countries, Italy suffers losses of about 28 billion euros, which is the highest. Germany ranks second, with losses of about 25 billion euros, followed by France, which experiences losses of about 20 billion euros.
Allianz warns that extreme heat is evolving from a climate issue into a more direct economic risk. The group expects that if hot weather continues to worsen in the future, the impact on labor productivity and economic growth could also increase.
