This summer's run of heatwaves cost the German economy roughly 25 billion euros, according to a new study from Allianz and Allianz Trade, underscoring how directly extreme heat is now translating into measurable economic damage rather than just discomfort and higher energy bills.

The bulk of that figure comes from lost productivity, as intense heat pushed up workplace absences, lengthened rest breaks and generally slowed output across sectors where employees work outdoors or in buildings without adequate cooling.

A Wide Range of Estimates

Not every analysis lands on the same number. Greenpeace has put the total economic damage from this year's extreme summer considerably higher, in a range of roughly 36 to 42 billion euros. The gap between the two figures comes down to scope: Allianz's estimate focuses narrowly on lost productivity, while Greenpeace's broader calculation folds in additional costs such as heat related health impacts, crop failures and wildfire damage.

Even taking the more conservative of the two estimates, the scale of the loss places heat squarely among the more expensive climate related risks facing the German economy this year.

Germany's Place Among Its Neighbors

Looked at across the continent, Germany recorded the second highest absolute heat related economic loss among 30 European countries covered by the Allianz study, trailing only Italy, where losses reached about 28 billion euros, and running ahead of France, which recorded roughly 20 billion euros in heat linked damage.

That ranking reflects both the severity of this year's heat and the size of Germany's economy, since a percentage level productivity hit translates into a larger absolute euro figure in a bigger economy than in a smaller one.

Why It Matters

The findings add concrete financial weight to a climate risk that has often been discussed mainly in terms of public health and comfort. For businesses and policymakers, a 25 billion euro productivity hit is the kind of number that can shift decisions on workplace cooling investments, adjusted working hours during heat spells and broader climate adaptation spending, rather than treating heatwaves as a purely seasonal inconvenience.

With scientists expecting summers of this intensity to become more frequent rather than less, this year's cost estimate is likely to serve as a benchmark against which future heatwaves, and the economic damage they cause, will be measured.