Economic losses caused by the record-breaking heatwaves and droughts that have gripped France this year could reach up to 24 trillion won, according to projections.

Citing local daily Le Monde on the 13th (local time), the report stated that Monique Barbut, France's Minister of Ecological Transition, estimated during an emergency meeting on drought held the previous day that the costs France must bear from record heatwaves, wildfires, and unprecedented droughts will range between 10 billion and 15 billion euros, roughly 16.4 trillion to 24.6 trillion won in Korean currency.

This is equivalent to 0.3 to 0.5 percent of France's Gross Domestic Product (GDP).

Simply calculated, this is a level that could drag down France's economic growth rate this year by up to 0.5 percentage points.

Considering that this year's growth rate forecast stands at 0.7 percent, this is a considerable shock.

However, the Ministry of Ecological Transition explained that these figures are not precise estimates vetted by economists or macroeconomic experts, but rather self-calculated projections based on past heatwave damage costs.

Outside of France, projections viewing the economic fallout of this year's heatwave even more seriously have also emerged.

In a report released on the 12th, Dutch investment firm Triodos Bank projected that the number of days with temperatures exceeding 30 degrees Celsius in France this year will reach 60.

This is an increase of 41 days compared to the past average of 19 days.

Triodos Bank analyzed that such extreme temperatures could affect productivity, agriculture, energy, and transportation, potentially dragging down France's economic growth rate this year by 1.5 percentage points.

Under this scenario, the French economy could fall into negative growth.

Experts point out, however, that more time is needed to accurately gauge the scale of economic damage from the heatwaves and droughts.

For agriculture, the actual scale of production decline can only be known after the harvest concludes, and damages such as cracks in houses or buildings caused by soil shrinkage from drought may only appear months later.

Some analyses suggest that in the short term, heatwaves could have a positive impact on certain economic activities.

As temperatures rise, sales of air conditioners and insulation devices may increase, alongside a rise in the use of outdoor terraces at cafes and restaurants.

Electricity consumption also increases as cooling demand grows.

France, which suffered from massive wildfires at the end of July, has been plagued by its fifth heatwave of the year since this week.

According to Meteo-France, orange heatwave alerts were issued for 80 out of 96 departments in mainland France as of the 13th.

On this day, daytime highs are expected to reach 38 degrees Celsius in the capital region of Ile-de-France and 40 degrees Celsius in the southwestern region of Nouvelle-Aquitaine.

This heatwave is expected to continue through the 14th before temperatures gradually drop starting from the northwestern region.

Alongside the heatwave, drought damages are also spreading.

According to the French Ministry of Ecological Transition, more than 40,000 people nationwide are suffering from tap water supply disruptions due to the drought.

The situation in small rivers is also severe, with about 43 percent experiencing broken water flows or complete dry-ups.

This is the most severe level observed for this time of year since records began.

Previously, projections had emerged that the heatwave persisting across most of Europe since early summer could reduce the European Union's (EU) Gross Domestic Product (GDP) by 1 percent this year.

According to the German weekly Der Spiegel on the 10th, Dutch bank Triodos estimated in a recent report that the EU could suffer economic losses amounting to approximately 294.8 trillion won due to the heatwave.

This means that most of the European Commission's economic growth rate forecast of 1.1 percent for this year could be wiped out by the heatwave.

(Photo: Yonhap News)