- Germany faces losses of up to $131 billion between 2026 and 2030 if heat waves seen in the past decade recur, the study showed
- Rising temperatures cut productivity and push up energy costs, weighing on companies and investment, it added
- Output losses of up to 3% of GDP are possible by 2030, placing Germany in the middle of Europe but on the losing side
- Southern Europe remains the hardest hit, while hotter regions outside Europe have adapted more to extreme heat
- Hamburg-based Allianz Trade said productivity drops by about 3% for each degree above 30°C, while energy costs rise roughly 1.2% per degree due to cooling needs
- Heat also strains public finances, lowering tax revenues by about 0.7% annually and worsening Germany’s fiscal balance by around 0.9% of GDP per year, the analysis showed
- Allianz Trade said adapting economies to extreme heat will become a key competitiveness factor.
(Writing by Friederike Heine; editing by Madeline Chambers)
