The significant economic toll is primarily driven by reduced workforce productivity caused by intense heat, increased absenteeism, and extended breaks—compounded by limited access to air conditioning. These factors combine to diminish overall production and added value. Europe's largest economy faced severe environmental pressures during the period, including a late June heatwave that shattered all-time national temperature records for three consecutive days past 42°C, alongside an official estimate of roughly 16,000 heat-related deaths.

Beyond workplace impacts, the heat triggered wildfires, damaged harvests, and caused river water levels to drop, which restricted vital shipping routes. Frank Sommerfeld, CEO of Allianz, noted that heat is frequently underestimated as a risk that strains individuals, infrastructure, and the economy while worsening hazards like drought and extreme weather.

Within Europe, Germany ranked as the second-hardest-hit country in absolute economic losses, trailing Italy at 28 billion euros and surpassing France at 20 billion euros. Across the 30 European nations analyzed, total losses reached an estimated 113 billion euros.

Looking ahead, the study cautioned about the growing risks of an anticipated severe El Nino climatic cycle, which is forecast by the World Meteorological Organization to be the largest in at least 1,000 years. This phenomenon could inflict nearly 392 billion euros in damages across 144 global economies next year and drive further food price increases in Europe. Allianz climate economist Hazem Krichene pointed out that while China, the United States, and India will shoulder nearly 60 percent of those gross global losses, climate-related economic damage is expected to persist in the years ahead.