Heat Waves Could Cost the EU 1% of GDP, Dutch Bank Says
This year’s heat waves and related productivity declines and lower agricultural output could erase as much as 1% of the gross domestic product of the European Union, wiping out most of the EU’s economic growth expected for 2026, according to Dutch bank Triodos. The bank and wealth manager, which focuses on financing environmentally and socially sustainable projects, expects labor productivity…
The European Union's economy could suffer a significant hit, potentially erasing up to 1% of its GDP this year due to the ongoing heat waves, according to Dutch bank Triodos. The bank predicts that labor productivity losses caused by extreme heat will reduce the EU's GDP by approximately 0.6%, erasing most of the anticipated economic growth for 2026. Agricultural output is expected to decline by 3% to 7% due to multiple heat waves, Reuters reported.
Triodos expects the EU GDP growth to slow down from 1.5% in 2025 to 1.1% this year, the European Commission's spring forecast revealed nearly three months after Iran's war disrupted oil and gas flows through the Strait of Hormuz. Triodos analysts note that higher food prices, restricted power generation, elevated electricity costs, and disruptions to transportation systems further exacerbate the damage.
France, the EU's second-largest economy after Germany, is anticipated to be the hardest hit, with GDP potentially contracting by 1.4%, resulting in an overall economic contraction of up to 0.6%. France has had to cut nuclear power generation due to low water levels in rivers used for cooling reactors, affecting the power supply and energy situation across central and eastern Europe.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
