From tourism to power generation and productivity, Europe feels economic cost of heatwaves
Low river levels have stalled German freight traffic and forced closure of nuclear plants in France Across Europe this scorching summer, workers have struggled in the heat as wildfires raged and critical infrastructure was shut down. Here we look at the impact of the heatwaves on several major economies across mainland Europe – with the help of analysis from economists at the Dutch bank Triodos ,…
Europe is experiencing economic impacts from heatwaves, with low river levels affecting German freight traffic and forcing the closure of nuclear plants in France, according to the Guardian Business. Workers have struggled in the heat as wildfires raged and critical infrastructure was shut down. Economists at the Dutch bank Triodos estimate that the heatwaves could wipe €180bn off EU GDP.
The heatwaves are also affecting the hospitality industry, with businesses in Italy reporting declines in turnover. In Padua, a survey of 600 hospitality businesses found that over 80% reported a 20% decline in turnover during the recent heatwave, said the Business Recorder. This decline can "wipe out your margin", according to Federica Luni, president of hospitality association APPE Padova.
The economic costs of heatwaves are significant, with the UK's economy already losing £4.4bn by the end of July, according to the green thinktank Verdant, as reported by the Guardian Business. Additionally, Moody’s estimates that last summer’s European heatwaves cost €43 billion in lost economic output. Insurers are also facing challenges in covering these losses, with a growing protection gap for companies across Europe.
Brief written by urgent.news from Guardian Business, Business Recorder — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
