European Economy Projected to Lose 4.7% GDP by 2030 Due to Extreme Weather
Severe weather predicted to significantly reduce European GDP by 2030, similar to 2008 crisis.
Key Points
- • European economy projected to lose 4.7% of GDP by 2030 due to extreme weather events.
- • Central banks anticipate catastrophic weather scenarios for 2026 and 2027.
- • Impact feared on productivity, agricultural output, and infrastructure.
- • Economic consequences likened to the 2008 financial crisis.
A recent report from the European Central Bank predicts that the European economy may experience a staggering loss of 4.7 percentage points in GDP by 2030 if extreme weather events continue unabated. This forecast is a consequence of various predicted catastrophic scenarios, including heatwaves, droughts, floods, and storms that are projected to impact the continent in 2026 and 2027.
The central banks, which modeled the potential economic impacts, assert that the ramifications of these weather events may parallel those of the 2008 financial crisis. Specifically, prolonged heatwaves will diminish worker productivity and complicate power production by creating challenges for cooling systems, undermining energy outputs crucial to economic stability. In addition, the destructive force of floods and storms is forecasted to devastate infrastructure, leading to substantial losses in agricultural output and triggering widespread business failures that could pose risks to the banking system.
These findings highlight an urgent need for proactive measures to mitigate the economic threats posed by climate-related events, which are becoming increasingly frequent and severe in Europe.