Economists say the scorching temperatures currently hitting various\nparts of the world are already a symptom of climate change, no longer a\nproblem for the future. The impact on economic activity is beginning to\nbe felt.<\/p>\n
The drought and extreme heat that struck Europe this year have shaken\nproduction systems, shipping, and public health. Meanwhile, this year\u2019s\nforest and land fire season in Europe is expected to be the largest ever\nrecorded.<\/p>\n
Scientists say the heatwave that hit Europe this year would not have\nbeen possible without climate change. Academics estimate that losses\nfrom this year\u2019s high temperatures will reach billions of euros.<\/p>\n
Europe is the fastest-warming continent compared with other\ncontinents in the world. The impact is wide-ranging, from government\nbudgets and inflation fluctuations to shifts in the tourism map. The\nsituation is also forcing the European Union to reconsider how the bloc\nproduces energy and transports goods.<\/p>\n
University of Mannheim economist Sehrish Usman said that from an\neconomic perspective, the shattering of temperature records in 2026 is\ndeeply worrying, especially because various extreme weather events\noccurred in the same year.<\/p>\n
\u201cTake heatwaves, drought, and forest fires, for example. These events\noccurred at the same time and largely in the same regions, multiplying\ntheir impact,\u201d she said on Monday (10\/8\/2026).<\/p>\n
Economists expect the economic impact of this year\u2019s record-breaking\nJune-July temperatures to be felt for months, even years, to come.<\/p>\n
Traffic on the Rhine and Danube rivers, the arteries of European\ncargo transport, has been hampered by low water levels. More than half\nof nuclear reactors have also had to shut down due to a lack of water\nfor cooling systems.<\/p>\n
Production of several commodities, such as maize and sunflowers, has\nfallen by 6 to 7 percent. The heatwave has also reduced productivity and\nclaimed many lives. In Germany, more than 10,000 heat-related deaths\nhave been reported.<\/p>\n
Meanwhile, emergency costs, such as firefighting and handling energy\nsupply shortages, are adding further strain to budgets. Dutch financial\ninstitution ING estimates that the disruption to Rhine river traffic\ncould reduce Germany\u2019s Gross Domestic Product (GDP) by up to 0.3 percent\nthis year.<\/p>\n
MBH Bank estimates that Hungary\u2019s GDP fell by 0.1 percent each week\nwhile the country\u2019s nuclear power plant was out of operation. Allianz,\nthe German insurance company, estimates that the two-week heatwave in\nJune alone will cut European GDP by 0.3 percentage points.<\/p>\n
Allianz estimates that climate change will erode economic growth by 5\nto 7 percent by 2030. Spain, France, and Italy will be the European\ncountries most severely affected.<\/p>\n
\u201cThe total bill for this year\u2019s losses will be far larger. This\nfigure does not yet account for forest fires, drought, various flood\nevents, or the anticipated El Ni\u00f1o phenomenon,\u201d said Allianz economist\nHazem Krichene.<\/p>\n
Given that the eurozone is expected to grow by only 1 percent this\nyear, the impact is highly significant. However, Usman said the true\nlevel of economic damage will only be felt in the years ahead.<\/p>\n
\u201cYou might expect the damage to be greatest in the year the extreme\nevent occurs and then subside, but we found the opposite. The economic\nimpact actually grows in subsequent years because extreme weather\ntriggers a slow chain of economic consequences,\u201d Usman said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/climate-change-begins-to-erode-europes-economy-1786405880", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }