Extreme heat costs the Italian economy 28 billion euros in 2026.

The extreme heat of the summer of 2026 cost the Italian economy 28 billion euros, a figure comparable to the amount of an economic stimulus package. This is revealed in a report by the German insurance company Allianz, which calculated the overall impact for the entire European Union at 113 billion.

Italy is the European country with the highest estimated losses, followed by Germany (25 billion) and France (20 billion). The losses include reduced production and economic activity caused by lower labor productivity, longer breaks, and absences during periods of extreme heat. At the European level, the impact is estimated at just under 0.5% of the economic output forecast for the current year.

The report is part of the "Climate Risk Tracker," a climate risk monitoring tool developed by Allianz that combines weather data, damage information, and predictive models of economic impacts. The study highlights a concerning trend: climate-related economic damages are increasing globally.

Over the past five years, Germany alone has suffered 50 billion euros in damages due to storms, floods, and other natural disasters. These annual losses have, on average, doubled compared to those recorded between 2000 and 2019. Globally, damages caused by natural disasters have increased by 54%.

Looking ahead, Allianz warns of additional economic risks linked to the El Niño weather phenomenon. If 2027 turns out to be another particularly hot year due to El Niño, the economic output of the 144 countries examined could contract by 392 billion euros, with China expected to record the largest losses.