Europe: Extreme weather weighs on growth – Standard Chartered
Standard Chartered’s Christopher Graham and Emily Ashford highlight that Europe’s record heat and drought in 2026 are disrupting refiners, power generation, inland waterways and agriculture.
Standard Chartered's Christopher Graham and Emily Ashford have revealed that Europe's extreme heat and drought in 2026 are severely impacting various sectors. The ECB's research indicates significant output losses, particularly in Eastern Europe, and warns that climate adaptation investments might divert resources from more productive areas.
Temperatures in many EU countries, including Western Europe which recorded its hottest June on record, have been broken. The impacts of extreme weather conditions are multifaceted, affecting refiners, power generation, inland waterways, and agriculture. ECB policy makers and fiscal agencies are grappling with challenging decisions as inflation and weaker demand interact.
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