Climate change: Heatwave costs the German economy billions
Never before has a June been as hot in Germany as in 2026. This has consequences not only for people and nature, but also for
Never before has a June been as hot in Germany as in 2026. This has consequences not only for people and nature, but also for businesses. Heat reduces productivity and causes illness, while cooling is expensive. A desk by the window, a building that faces south — during Germany's cold and dark season, sunlight and warmth are a clear advantage. In summer, however, such workstations, without shading and air conditioning, can become unbearably hot. As a result of climate change, heatwaves of up to 40 degrees Celcius are now occurring in Germany more frequently — and lasting longer. Effective cooling is still relatively uncommon in Germany. While air conditioning is considered virtually standard in the United States, it is present in just 6% of private households in Germany. By contrast, 50% of office and administrative buildings are now equipped with cooling systems. "In northern countries, buildings tend to be designed to retain heat because of the cold winters", explained economist Katharina Utermöhl, who works in economic policy research at the insurance group Allianz. She is a co-author of a study examining the impact of heat on the German economy. The study warns of enormous costs as productivity declines and energy expenses rise. Extreme heat is no longer merely a short-term weather phenomenon, but a structural economic shock. How Europeans cope with the record-breaking heat wave To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Temperatures above 30 degrees Celsius place a significant strain on the human body — especially when it is not accustomed to them.
Concentration declines, perspiration increases, and the cardiovascular system as a whole is affected. According to Utermöhl, who spoke to DW, this has measurable consequences for the world of work. "Above 30 degrees, productivity drops by 3% per degree, while energy costs rise by 1.2% percent per degree." People work more slowly, mistakes become more frequent, and machines overheat. If cooling is used, more electricity is required — and that is expensive. Above 30 degrees: less productivity, more illness Heat places the greatest burden on those who work outdoors — for example in construction, agriculture, or in delivery services. Their health is acutely threatened by high temperatures. According to the German Federal Ministry of Labour, overall sick leave rises by around 3.5% on days when temperatures exceed 30 degrees Celsius, and by up to 6% during prolonged heatwaves. This, too, results in a decline in productivity. According to the Allianz study, Germany's total economic losses between 2026 and 2030 could amount to around $131 billion (€120 billion). Losses in gross domestic product — that is, overall economic output — of up to 3% are also considered possible. Declining returns could dampen companies' willingness to invest. In turn, this could further undermine future productivity and competitiveness, the study states. Hottest June since records began Yet, Germany still ranks in the middle range when it comes to the potential economic damage caused by climate change.
The BriefWire