2025-09-20 12:00
publication
2025-09-20 12:00
The indirect and direct effects of extreme weather phenomena, such as heat, drought and floods that Europe experienced in the summer of 2025, cost the European economy around EUR 43 billion – scientists from the University of Mannheim and the European Central Bank estimated.
Scientists, cited on Monday by the AFP agency, think that by 2029 macroeconomic costs generated by extreme phenomena that occurred in the summer of 2025 may still increase to EUR 126 billion.
The study includes both direct and indirect effects of such weather phenomena, i.e. both damaged roads, buildings or crops, as well as, for example, production losses, caused by the need to rebuild the destroyed factory.
According to the manager, Sehrish Usman, the real cost of extreme weather phenomena goes far beyond their direct effects. Deficiency or destruction of some products caused by drought may lead to an increase in inflation in the long run.
Spain, France and Italy are, according to the state report, which suffered the most due to this year's extreme phenomena in the weather. Each of them suffered losses exceeding EUR 10 billion. Central and Northern European countries suffered less damage.
The authors of the study emphasized that their estimates are probably underestimated because they did not take into account such effects of climate change as fires. They also noticed that the data combined by insurance companies ignore such indirect effects as the losses of productivity related to heat. (PAP)
OS/ AKL/
