Europe is melting: a record-breaking heat wave has been crushing the continent since late May, with Paris hitting 38°C, London 33°C, and Berlin matching it. Thousands of deaths are projected before it breaks. And while the images of crowded fountains and shuttered schools dominate the headlines, the economic damage is already accumulating in ways most employers and policymakers have barely begun to reckon with.
In fact, if the heat waves keep worsening, Allianz has estimated that France, Italy, Germany, and Spain alone could absorb cumulative heat-related GDP losses of $638 billion by 2030, driven primarily by falling labor productivity and surging cooling costs.
