Heatwave Threatens to Devour EU Economic Growth

A severe heatwave gripping Europe could wipe out the region's expected economic growth in 2026, according to a report by Triodos.

Analysts estimate that the damage caused by the heatwave will reduce the European Union's gross domestic product (GDP) by approximately 1 percentage point, equivalent to losses of $208 billion (€180 billion).

The main drivers of these losses are a fall in labour productivity and a blow to the agricultural sector.

France is expected to bear the brunt of the impact, with its GDP potentially reduced by 1.4 percentage points, pushing the country's economy into an annual contraction of 0.6 percentage points.