2 weeks ago

Europe's Economy Feels Climate Change's Costly Summer Heat

Europe's Economy Feels Climate Change's Costly Summer Heat
How The Hard Reality Of Climate Change Hit Europe's Economy This Summer · deccanchronicle.com

This summer, Europe got very, very hot.

The heat and lack of rain caused big problems for people and businesses.

Scientists say this hot weather is happening because of climate change.

Rivers like the Rhine and Danube got too low for boats to carry goods.

Some power plants had to stop working because they needed cool water.

Farmers lost some of their crops because of the heat.

Many people, especially in Germany, got sick or died because of the hot weather.

All these problems together cost a lot of money, probably hundreds of billions of euros.

Experts say this is just the beginning and things may get worse.

Countries in southern Europe might see fewer tourists and higher food prices.

The hot weather is also making it harder for governments to manage their budgets and for the European Central Bank to control inflation.

Key facts

Estimated economic damage
Hundreds of billions of euros this year
Heat-related deaths in Germany
More than 10,000
GDP impact of June heatwave (Allianz)
European GDP cut by 0.3 percentage points
GDP impact of Rhine halt (ING)
Germany's GDP lowered by 0.3 percentage points
Crop losses (maize and sunflower)
6-7% loss in July
Projected growth impact by 2030 (Allianz)
5-7% off growth for most exposed economies like Spain, France, Italy
Inflation impact of 2022 extreme heat
Euro zone inflation lifted by 0.34 percentage points via food prices

Quotes

Hazem Krichene

Allianz economist

“The total bill for this year will be much larger. This figure doesn’t account for the fires, droughts, different flood events or the expected El Niño.”
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“Take heatwaves, droughts, wildfires... these events are taking place at the same time and mostly in the same regions, compounding their impact.”
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Carsten Brzeski

ING economist

“Can you see tourists marching through southern Italy or Spain in 45 degrees? I can't. So, I think the nature of tourism will change.”
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Sources

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