Germany Loses €1 Billion for Every Day Temperatures Exceed 35°C, Study Finds

Germany could face annual economic losses of more than €20 billion (about $23 billion) if severe heatwaves become a regular occurrence, according to economic research institute Prognos. In an analysis prepared for the German business newspaper Handelsblatt, the institute said that each day with temperatures above 35 degrees Celsius costs Europe’s largest economy around €1 billion (approximately $1.15 billion).

The study found that the heatwave during the last two weeks of June caused an estimated €6.32 billion (around $7.25 billion) in economic damage across Germany.

Researchers warned that if Germany experiences three to four similar heatwaves each year, annual economic losses could exceed €20 billion.

According to the report, the manufacturing sector suffers the greatest impact from extreme heat, followed by health and social services, retail trade, construction, and the food industry.

However, the researchers noted that their estimates do not include the effects of higher electricity prices, equipment failures, supply chain disruptions, or long-term damage to infrastructure. Taking these factors into account would likely push the actual economic cost significantly higher.

The study concludes that climate change-driven extreme weather is posing an increasing threat to industrial economies, highlighting the growing financial risks associated with rising global temperatures.