France could face between 10 billion euros and 15 billion euros (US$11.6 billion to US$17.3 billion) in direct and indirect economic costs from the heatwaves that have swept the country in recent months, according to Environment Minister Monique Barbut.
Barbut, speaking on Wednesday, cited estimates from France’s national statistics agency INSEE and warned that the heatwave period was not yet over.
The projected cost would far exceed the impact of France’s 2022 drought, which resulted in an estimated 5.6 billion euro in direct and indirect costs.
This year’s heatwaves have been longer and more intense, with more extensive forest fires and a larger decline in agricultural production, Barbut said.
The continuing drought has also left more than 40,000 people facing water cuts, adding to the strain on communities and the wider economy.
France’s worsening conditions come as Europe faces what economists and academics have warned could be an exceptionally costly summer of heat and drought.
Record temperatures and water shortages across the continent are disrupting power generation, shipping and public health, while wildfires threaten to make this Europe’s worst fire season on record.
The economic impact is expected to extend beyond France, with estimates suggesting Europe’s extreme heat and drought could cost hundreds of billions of euro as climate-related disruptions affect key industries and infrastructure.
