Abnormal heat wave in Europe threatens to reset the growth of the EU economy
The record heat wave and drought that gripped Europe this summer threaten to negate almost all of the projected growth in the gross domestic product (GDP) of the European Union (EU) in 2026, Bloomberg reported on August 14.
"The incessant hot and dry weather causes deadly forest fires, disrupts energy supplies, destroys crops, and depletes reservoirs and rivers. The consequences could erase almost all of the expected EU growth of 1.1% of GDP this year," the article says.
The shallowing of the Rhine, Europe's main transport artery, has dealt a key blow to the economy. On August 14, the river level at the Kaub post fell to 7 cm, the lowest level since 1880, which forces ships to reduce loading and cancel flights, provoking an increase in freight rates and forced production stops at chemical, oil and steel companies, the media reports.
Commerzbank estimates that if the Rhine remains at critically low levels until mid-September, it could reduce German GDP by 0.35 percentage points in the third quarter. At the same time, heat and lack of precipitation cause direct damage to agriculture.
In France, the EU's largest agricultural producer, the corn harvest will be the worst since 1980, as yields will fall by almost 20%, leading to higher grain prices. The energy sector is suffering from a reduction in the production of hydroelectric power plants due to dried-up reservoirs and shutdowns of nuclear power plants due to overheating or shallowing of rivers.
In July, Italian hydroelectric power plants showed a minimum output in 10 years, in France, the loss of nuclear generation reached a record, and the invasion of jellyfish shut down reactors at the Gravelines nuclear power plant (about 5% of capacity). Reactors at nuclear power plants in Romania and Hungary have been shut down on the Danube due to shallowing, which increases the risk of a winter increase in electricity prices due to substitution with more expensive gas.
Moreover, since the beginning of the year, more than 5.5 thousand square kilometers have been burned out in the EU, losses in France are estimated at 10-15 billion euros, while most of the losses are not insured. Europe experienced five heat waves, the temperature in some places exceeded 45 degrees, the death toll from extreme heat in 2026 exceeded 25 thousand people, and precipitation from June to mid-August fell a third below the ten-year norm.
The Euractiv portal reported on April 13 that the drought had affected 38% of the EU territory. According to the publication, France, one of the largest corn producers in the European bloc, expects the lowest harvest since 1980. The livestock sector is also facing a problem.
Переведено сервисом «Яндекс Переводчик»
