Khaberni - The record heatwave hitting several European countries has had broad economic impacts, after temperatures exceeded 40 degrees Celsius in several areas, putting pressure on sectors like transportation, energy, and agriculture, while at the same time boosting demand in other sectors such as hotels and air conditioning devices.
Germany, France, Switzerland, and the United Kingdom recorded record-breaking temperatures during June, while the heatwave extended to Italy and other countries amid warnings of its continued impact on economic activities and infrastructure.
Revitalized sectors
The high temperatures led to a significant increase in demand for hotels, especially in France, where thousands of residents sought air-conditioned rooms to escape the heat, after Paris recorded 40.9 degrees Celsius, while the majority of residential apartments lack air conditioning devices.
Some hotels and rural resorts equipped with swimming pools or built with stone walls that retain coolness benefited from the increased demand, even if they were not equipped with air conditioning systems.
There was also a surge in sales of air conditioning units and electric fans across various European markets, with Asian manufacturers announcing a significant rise in European demand for cooling equipment.
Economic losses
In contrast, several sectors faced significant pressure, as German railway companies suspended some trips and allowed free cancellations due to risks of rail expansion and impact on electric signals, and authorities closed part of the highway "A7" near Hamburg after the asphalt layer cracked due to the heat.
In Switzerland, the "Beznau" nuclear power plant, the oldest in Europe, temporarily shut down its reactors due to rising temperatures in the Aare river, reducing the plant's cooling capacity.
Activities, festivals, and music concerts in several countries were canceled or postponed, while some sports competitions routes were shortened to minimize the risks of heat stress exposure.
In Italy, the agricultural sector faces growing concerns after the water level of the "Po" river, the country's longest, dropped to early record lows, leading to seawater infiltrating farmlands and threatening crop production and fish stocks, amid warnings of potential exhaustion of water reserves within less than three weeks under current conditions.
Production pressures
Economists believe that recurrent heatwaves are no longer just a seasonal phenomenon but have become a structural economic hazard, directly affecting the productivity of workers in construction, agriculture, industry, transportation, and hospitality sectors.
According to estimates by "Oxford Economics," a four-day heatwave could reduce quarterly labor productivity by about 1.5 percentage points in Britain, and up to two percentage points in the rest of Western Europe.
A study by "Allianz" insurance estimated that France could lose up to 240 billion dollars of economic output between 2026 and 2030 in a scenario of continuing heatwaves, compared to 147 billion dollars for Italy, and 120 billion dollars for Spain, due to declining productivity and increased energy costs and adaptation to the heat.
Climate experts warn that current heatwaves are becoming more frequent and intense due to climate change, urging European governments to accelerate investments in heat-resistant infrastructure, update energy and water networks, and redesign work environments to mitigate future economic losses.
