A French Civil Security Dash 8 firefighting aircraft drops fire retardant, while firefighters continue to battle a wildfire near Montfort-sur-Argens, near Correns, in the Var department, as drought conditions worsen following a heatwave and water shortages across much of France.
Firefighters take a rest, in Lege-Cap-Ferret, Gironde department, amid drought conditions following a heatwave and water shortages across much of France.
Aug 10 (Reuters) – The extreme heat and drought affecting large parts of Europe this summer could erase much of the economic growth expected across the region, Dutch bank Triodos (TRIOd.AS),said in a report on Saturday.The bank, which specialises in financing environmentally and socially sustainable projects, estimates that heat-related disruption could shave around 1% off the European Union’s gross domestic product, equivalent to roughly €180 billion ($208 billion) in economic losses, driven primarily by weaker labour productivity.
- Labour productivity losses alone could cut EU GDP by around 0.6%, while agricultural output is expected to fall by 3% to 7%.
- “Higher food prices, constrained power generation and higher electricity prices, and disruption to roads, rail and inland waterways add to the damage,” Triodos said.
- France is expected to be the hardest hit, with recurring heatwaves reducing GDP by around 1.4% and potentially tipping it into an annual contraction of 0.6%.
- Italy, Spain and Belgium also face substantial losses, while countries such as Poland, which experienced fewer exceptionally hot days, are expected to be less affected.
- The European Commission has forecast EU GDP growth of 1.1%, while the IMF expects the euro area to grow by around 0.9%.
($1 = 0.8657 euros)
Reporting by Jakob Van Calster, editing by Milla Nissi-Prussak.
