"Europe Suffers 70 Trillion Won in Damages from Abnormal Weather This Summer"

Joint Study by German University and ECB
Direct and Indirect Damages Estimated... Actual Losses May Be Even Greater

It has been analyzed that the extreme abnormal weather events across Europe this summer have caused economic damage amounting to approximately 43 billion euros (about 70 trillion won).

A thermometer on a road in the Murcia region of Spain shows 48 degrees. Photo by EPA Yonhap News

On September 15 (local time), the French daily newspaper Lib?ration reported that researchers from the University of Mannheim in Germany and the European Central Bank (ECB) used data on this summer's heatwaves, droughts, and floods, along with an economic damage estimation model, to produce these findings. The estimated damage includes both direct and indirect factors, such as destruction of roads and buildings, loss of agricultural products, production disruptions, casualties, and the social costs required to respond to these events.

As a result, Spain, France, and Italy, which suffered from severe heatwaves this summer, were found to be the most heavily affected. Each of these countries suffered losses exceeding 10 billion euros (about 16 trillion won), and there were warnings that such damages could surpass 30 billion euros (about 48 trillion won) in the medium term.

Dr. Serik Usman from the University of Mannheim explained, "The true cost of extreme climate events goes far beyond their immediate effects." For example, he noted that if drought reduces the supply of certain goods, it can ultimately lead to price increases and result in medium- to long-term inflation.

The research team also pointed out that while the damages in Central and Northern European countries were relatively small, the frequency of floods has been increasing in recent years. Consequently, they projected that the economic burden from future weather anomalies may grow.

Furthermore, the researchers added that the study did not include the complex effects of simultaneous heatwaves and droughts, nor the major wildfire damages in places like Spain and Greece, meaning the actual scale of economic losses is likely even greater.

Taking all these various factors into account, it was also projected that the macroeconomic costs Europe will bear due to natural disasters that occurred this summer could reach up to 126 billion euros (about 205 trillion won) by 2029.