EU/ Production losses due to extreme weather events estimated at €43 B in 2025 and €126 B by 2029 (study)

The cost of the loss of production due to extreme weather events, like heat, droughts, and floods, during the 2025 summer, is estimated at €43 B in 2025 and €126 B by 2029, respectively 0.26% and 0.78% of the 2024 GDP, highlights a joint study of the University of Mannheim and the European Central Bank published in the European Economic Review on 15/09/2025.

"The projected increase in extreme climate events in the coming decades is likely to exacerbate the existing productivity and demographic challenges facing Europe. The Draghi report, published on 16/09/2024, highlighted the economic challenges arising from weak productivity growth and a declining population.

Against this background of heightened economic uncertainty, we investigate the macroeconomic impact of extreme climate events. That these events will become more frequent and more intense over the course of the coming decades looks to be an unfortunate certainty", outlines Dr. Sehrish Usman (University of Mannheim), co-author of the study.


"Investigating local economies can help provide greater evidence of the factors that…