How the heatwave is set to aggravate Europe's other vulnerabilities
As heatwaves become more frequent and intense, they are likely to place further strain on European economies that are already grappling with multiple challenges.
The rising cost of living and the impact of climate change were among the top challenges facing residents of European Union member countries, according to a September 2025 survey.
The survey was conducted in the aftermath of a scorching heatwave that swept across the continent a few months earlier, killing more than 20,000 people. Now, another bout of extreme heat has returned, with multiple deaths reported within days.
According to a Lancet study, capacity reduction due to extreme heat exposure cost Europe's economy an estimated $26.4 billion in 2024 alone, equivalent to 0.17 per cent of the region's GDP. At the same time, the costs of heat-related mortality were nearly 0.15 per cent in 2024.
As heatwaves become more frequent and intense, they are likely to place further strain on European economies that are already grappling with multiple challenges, including persistently high energy costs and sluggish economic growth. The impact extends well beyond the immediate costs. The indirect effects are likely to be felt for years.
TOURISM A KEY DRIVER
According to United Nations data, Europe remains the world's leading tourist destination. In the first three months of 2026, the region welcomed 130 million of the 307 million international tourist arrivals worldwide, accounting for 42 per cent of the total.
Spain is Europe's most visited destination, followed by Italy, France, and Greece. As scorching summers become increasingly common, Europe's appeal as the world's premier tourist destination could come under pressure.
Tourism is one of the pillars of Europe's economy. It contributes nearly 10 per cent of the European Union's GDP and sustains around 2.3 million businesses, employing approximately 12.3 million people.
With its economy barely growing, Europe can ill afford a setback to one of its biggest growth drivers. In the first quarter of 2026, international tourist arrivals in Europe grew at twice the global rate. Whether that momentum can be sustained in the second quarter remains to be seen, as the region grapples with an intense heatwave.
SHRINKING, AGEING POPULATION
The reason the intense heatwave is becoming deadly in Europe is its ageing population. Europe's population began to shrink in 2021, and the count has declined by more than five million in the last five years.
The median age across the 27 member states of the European Union has risen from 39.6 years in 2005 to 44.9 years as of January 1, 2025. Italy has the oldest population, with a median age of 49.1 years, while Ireland has the youngest, at 39.6 years.
A shrinking and ageing population means fewer people available to work in farms and factories. The working-age population accounted for 67 per cent of the total population in 2010. That share fell to 63 per cent in 2025 and is projected to decline further to just 54 per cent by 2100.
Demographic changes are making Europe more vulnerable to future heatwave shocks. Whether the continent can overcome this growing challenge remains an open question.
The rising cost of living and the impact of climate change were among the top challenges facing residents of European Union member countries, according to a September 2025 survey.
The survey was conducted in the aftermath of a scorching heatwave that swept across the continent a few months earlier, killing more than 20,000 people. Now, another bout of extreme heat has returned, with multiple deaths reported within days.
According to a Lancet study, capacity reduction due to extreme heat exposure cost Europe's economy an estimated $26.4 billion in 2024 alone, equivalent to 0.17 per cent of the region's GDP. At the same time, the costs of heat-related mortality were nearly 0.15 per cent in 2024.
As heatwaves become more frequent and intense, they are likely to place further strain on European economies that are already grappling with multiple challenges, including persistently high energy costs and sluggish economic growth. The impact extends well beyond the immediate costs. The indirect effects are likely to be felt for years.
TOURISM A KEY DRIVER
According to United Nations data, Europe remains the world's leading tourist destination. In the first three months of 2026, the region welcomed 130 million of the 307 million international tourist arrivals worldwide, accounting for 42 per cent of the total.
Spain is Europe's most visited destination, followed by Italy, France, and Greece. As scorching summers become increasingly common, Europe's appeal as the world's premier tourist destination could come under pressure.
Tourism is one of the pillars of Europe's economy. It contributes nearly 10 per cent of the European Union's GDP and sustains around 2.3 million businesses, employing approximately 12.3 million people.
With its economy barely growing, Europe can ill afford a setback to one of its biggest growth drivers. In the first quarter of 2026, international tourist arrivals in Europe grew at twice the global rate. Whether that momentum can be sustained in the second quarter remains to be seen, as the region grapples with an intense heatwave.
SHRINKING, AGEING POPULATION
The reason the intense heatwave is becoming deadly in Europe is its ageing population. Europe's population began to shrink in 2021, and the count has declined by more than five million in the last five years.
The median age across the 27 member states of the European Union has risen from 39.6 years in 2005 to 44.9 years as of January 1, 2025. Italy has the oldest population, with a median age of 49.1 years, while Ireland has the youngest, at 39.6 years.
A shrinking and ageing population means fewer people available to work in farms and factories. The working-age population accounted for 67 per cent of the total population in 2010. That share fell to 63 per cent in 2025 and is projected to decline further to just 54 per cent by 2100.
Demographic changes are making Europe more vulnerable to future heatwave shocks. Whether the continent can overcome this growing challenge remains an open question.
