Extreme weather has cost Europe €43 billion
Heatwaves, droughts, and floods that marked this summer inflicted losses of €43 billion on the European economy, according to a new study released today. The report warns that these immediate costs are only the beginning, with damages projected to rise to €126 billion by 2029.
The study, led by Sehrish Usman of the University of Mannheim (Germany) with contributions from two European Central Bank economists, combines meteorological data with economic modeling to estimate the impact of increasingly frequent and severe extreme weather events driven by climate change.
The heaviest damage occurred in Cyprus, Greece, Malta, and Bulgaria, each suffering short-term losses exceeding 1% of their 2024 Gross Value Added (GVA). Other Mediterranean countries such as Spain, Italy, and Portugal followed closely.
Researchers described their findings as “conservative”, as they do not account for the unprecedented wildfires that devastated southern Europe last month or the ongoing extreme weather events currently affecting the region.
Usman noted that “the real cost of extreme weather emerges slowly, as these events affect lives and livelihoods through a wide range of channels that extend beyond the initial impact.”
The study suggests that climate change has made wildfires 40 times more likely in Spain and Portugal, and 10 times more likely in Greece and Turkey. The death toll from June’s devastating heatwave is also estimated to have tripled in 12 major cities due to pollution-driven warming.
Experts emphasize that indirect impacts—such as disrupted supply chains, lost work hours during heatwaves, and damaged transport infrastructure—could increase overall costs by up to 30%.
“The big message is clear,” the report concludes. “Extreme weather is already leaving a significant economic footprint, and the indirect effects may be just as devastating as the immediate destruction.”
