A study by Allianz Trade found that the heatwaves that hit Europe in 2026 caused economic losses totaling 113 billion euros. Italy, Germany, and France were the most affected, accounting for nearly two-thirds of these losses. Italy suffered the highest losses at 27.8 billion euros, followed by Germany with 25 billion euros and France with over 20 billion euros. These losses represent approximately 0.46% of the combined projected GDP of 30 European countries. The study includes not only the cost of physical damage but also production losses and the impact on household purchasing power due to inflation, particularly in food prices. Italy’s economic impact was especially severe relative to its size, reducing its growth by 1.19 percentage points. In contrast, Germany’s growth was affected by 0.54 percentage points. When including Belgium and the Netherlands, which incurred losses of 9.4 billion euros and 9.2 billion euros respectively, these five countries accounted for 81% of the total economic loss across Europe. The insurer highlighted that extreme heat can reduce production even in the absence of visible damage to infrastructure or equipment. For example, in India, high temperatures have been linked to lower worker productivity and increased absenteeism in the manufacturing sector. The study warns that 2027 is likely to be another year of extreme global heat, possibly becoming the hottest year on record. The World Meteorological Organization (WMO) predicts that global average surface temperatures will be between 1.3°C and 1.9°C above the 1850-1900 average between 2026 and 2030. An intense El Niño climate phenomenon is already forming and could lead to global economic losses of 451 billion dollars, or 0.24% of the projected GDP for 144 economies. Most of these losses are expected to occur in 2027. For the 27 European Union member states, the economic impact of the El Niño phenomenon could amount to 24 billion dollars, or 0.09% of their GDP, excluding damage from droughts, forest fires, and other extreme weather events. The study also notes that this phenomenon could contribute to rising prices and inflationary pressures across the region.