A recent report by Allianz Research highlights that heatwaves in Europe could reduce GDP growth by 0.5 percentage points in 2025, equating a day with temperatures exceeding 32 degrees Celsius to half a day of strikes.

The economic impact of these heatwaves varies significantly by country; for instance, Germany may face a GDP loss of 0.1 percentage points, while Spain could see losses as high as 1.4 percentage points due to more extreme summer temperatures.

Currently, Germany is experiencing some of its hottest days of the year, with temperatures soaring up to 40 degrees Celsius, raising serious concerns about public health and safety.

The health costs associated with heatwaves are substantial, with estimates indicating that France incurred between €22 billion and €37 billion in health-related expenses from 2015 to 2020 due to increased hospital admissions and premature deaths.

Statistics reveal a troubling upward trend in heat-related sick days since 2015, prompting political calls for action to safeguard workers from heat-related risks.

To mitigate productivity losses, Allianz Research advocates for structural measures such as adapting workplaces and urban areas, alongside immediate alert and prevention strategies.

As heatwaves are expected to become more frequent, investments in climate change adaptation strategies are deemed essential to address the broader economic challenges posed by climate change.

Heatwaves can also disrupt transportation, causing issues like rail and asphalt deformation, which lead to delays that are often difficult to quantify.

Without proactive measures, extreme heat could emerge as the most costly climate risk, potentially resulting in annual productivity losses of up to $2.4 trillion by 2035.

The frequency and intensity of heatwaves are likely to lead to significant material losses in developed countries, while developing nations may face more severe human losses.

Experts emphasize the importance of preparing for heatwaves, as they are predictable unlike other natural disasters, allowing for both physical and economic preparations.

The rising frequency and severity of heatwaves, droughts, and wildfires due to climate change are becoming the 'new norm,' carrying substantial economic implications.