Germany could face annual economic losses exceeding €20 billion if extreme heatwaves become a regular occurrence, according to a study by the economic research institute Prognos. The analysis, prepared for the business newspaper Handelsblatt, found that each day with temperatures above 35 degrees Celsius costs Europe’s largest economy around €1 billion.

The study reported that the late-June heatwave alone caused an estimated €6.32 billion in losses. Prognos warned that if three to four similar heatwaves occur each year, the total annual damage could surpass €20 billion. The manufacturing sector is the most affected, followed by health and social services, retail, construction, and the food industry.

Researchers noted that their calculations did not include factors such as high electricity prices, equipment failures, supply chain disruptions, or long-term infrastructure damage. Including these could significantly increase the total losses. The report concluded that climate change-driven extreme weather poses growing risks to industrial economies like Germany’s.