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Germany's economy could lose more than €20 billion, or $23 billion, a year if the country experiences severe heatwaves on a regular basis, according to a new study published Thursday.
Economic research firm Prognos calculated that each day with temperatures above 35°C (95°F), could cost the European Union's largest economy nearly €1 billion, or $1.15 billion.
The analysis, prepared for the German business daily Handelsblatt, estimated that the heatwave during the final two weeks of June alone cost Germany's economy about 6.32 billion euros, or $7.25 billion.
Prognos said Germany could face three or four heatwaves of similar intensity each year in the future.
That could push annual economic losses above €20 billion.
The researchers said their estimates do not include several potential costs, including higher energy prices, machine breakdowns, supply chain disruptions and long-term infrastructure damage.
They said total economic losses could be even higher once those factors are taken into account.
According to the study, manufacturing is the sector most affected by extreme heat.
Health and social services, retail, construction and the food industry were also among the sectors most exposed to losses linked to high temperatures.
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