"European Heatwave Projected to Cause Wrenching 295 Trillion Won Loss This Year… 1% of GDP"

Projections indicate that the persistent heatwave sweeping across most of Europe since early summer could slash the European Union's (EU) gross domestic product (GDP) by 1%.

According to German weekly Der Spiegel on the 10th (local time), the Dutch bank Triodos warned in a recent report that the heatwave could inflict economic losses amounting to 180 billion euros (approximately 294.8 trillion won) on the EU.

This implies that nearly all of the European Commission's projected 1.1% economic growth rate for this year could be wiped out by the heatwave.

Triodos projected that a decline in labor productivity alone would shrink EU member states' GDP by 0.6%, while agricultural output is expected to drop by 3% to 7%.

The report stated, "Rising food prices, decreased power generation, higher electricity bills, and disruptions in road, rail, and inland waterway transport are compounding the damage," predicting that France, which suffers from recurrent heatwaves, could see its GDP reduced by 1.4%, potentially resulting in a 0.6% economic contraction.

German insurer Allianz previously analyzed that a two-week heatwave in June alone reduced Europe's GDP by 0.3%.

Projections have also emerged that the Rhine River, which accounts for about 80% of Germany's inland water transport, is drying up due to drought and will soon effectively be split in half.

Jens Schwanen, managing director of the German Inland Navigation Association (BDB), stated that day, "We expect to record a single-digit water level at the Kaub gauge for the first time this week," adding, "In this case, full navigation along the entire Rhine will no longer be possible, effectively dividing the river into two separate sections."

Kaub is a basin between Koblenz and Mainz on the middle Rhine, historically known as a major bottleneck due to its shallow water levels.

An emergency status has been issued not only for upstream industrial regions such as Ludwigshafen, but also for landlocked Switzerland, which relies on Rhine shipping for about 10% of its trade.

Swiss broadcaster SRF pointed out that if the Rhine is cut off in the middle, the costs of transshipping cargo onto trucks or trains will be high, and bulky machinery or chemicals are practically impossible to transport by road.

In addition to the Rhine, most rivers across Europe are suffering from severe droughts.

Analyzing data from the EU's Copernicus Climate Change Service, AFP reported that as of last month, water volumes hit record lows since measurements began across 85% of the Rhine, 95% of the UK's River Thames, and two-thirds of the Danube River, which passes through 10 European countries.

AFP added that droughts were observed across 95% of mainland France and 99% of Switzerland last month, while droughts in Hungary, Slovenia, and Austria were also the most severe on record as of July.

According to Météo-France, rainfall last month was about 70% below average, making it the third-driest July on record.

The government stated that about 70% of its territory is subject to water restriction measures.

The UK Environment Agency also reported that 71.3% of England is experiencing drought conditions, with water restrictions imposed on approximately 27 million residents.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.