A severe heatwave gripping central Europe is generating significant economic disruption, with losses in productivity, infrastructure strain, supply chain delays and rising energy costs mounting across Germany, Austria and Switzerland as the region records historically high temperatures.
On Friday, the town of Saarbrücken in North Rhine-Westphalia registered a new all-time temperature record for Germany of 41.3°C. Temperatures of between 36°C and 41°C, and in some areas up to 42°C, are forecast for Saturday, with a modest drop expected from Monday. Germany's Federal Meteorological Service (DWD) has issued extreme heat warnings for almost the entire country, noting that such conditions have become more frequent as a result of the climate crisis.
The economic toll is drawing serious attention. Credit insurer Allianz Trade, modelling extreme scenarios, estimated that Germany could sustain damages of up to €112.5 billion by 2030 if heatwave periods continue. The same research found that for every degree Celsius above 30°C, productivity falls by 3%.
"Heat is evolving from a meteorological phenomenon into an economic risk, and we must therefore manage it in the future in exactly the same way as energy prices, supply chain disruptions or geopolitical risks," Oliver Zander, a senior figure at strategy consultancy Arthur D. Little, told the German television channel n-tv. He identified the sectors most exposed as those relying on physical labour, outdoor work, temperature-sensitive processes or strict delivery schedules, including the automotive industry, mechanical engineering and electronics, all of which operate complex supply chains vulnerable to heat-related delays.
Extreme heat is also placing growing pressure on electricity networks, as demand for cooling rises sharply among households, businesses and industry, while high temperatures simultaneously reduce the efficiency of power lines and technical systems. Low water levels in major rivers present an additional industrial risk, restricting the carrying capacity of inland waterway transport, a critical logistics artery for much of central European industry. On Friday, the temperature of the water in the river Main was measured at 30°C.
In Austria, the highest temperature recorded on Friday was 37.8°C, at Bad Deutsch-Altenburg near the Slovak border. Austrian Federal Railways (ÖBB) warned of possible disruptions and delays to rail services as the heat affects infrastructure.
Switzerland is also experiencing extreme temperatures, with consequences already reaching the energy sector. On Friday, the Beznau nuclear power plant was taken offline because the temperature of the river Aare, which is used to cool the plant's two reactors, had risen too high, according to energy company Axpo.
Source: CNA
