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Extreme weather could cause 5% dip in euro zone GDP: ECB official
The Straits Times
|July 11, 2025
Extreme weather events such as heatwaves, flooding and wildfires could wipe as much off euro zone gross domestic product (GDP) in the next five years as the global financial crisis or the Covid-19 pandemic, a senior European Central Bank (ECB) official said on July 9.
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LONDON - Extreme weather events such as heatwaves, flooding and wildfires could wipe as much off euro zone gross domestic product (GDP) in the next five years as the global financial crisis or the Covid-19 pandemic, a senior European Central Bank (ECB) official said on July 9.
A series of severe weather-related events could cause an almost 5 per cent near-term drop in euro zone growth, based on the most extreme climate scenario devised by a group of more than 140 bank supervisors and regulators earlier in 2025, according to Dr Livio Stracca, deputy director-general at the ECB.
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