The economic impact was largely attributed to reduced productivity during periods of extreme heat, along with increased workplace absences and longer breaks.

Germany experienced record temperatures of more than 42°C for three consecutive days during a heatwave in late June. Official figures show that around 16,000 heat-related deaths have been recorded this year. The extreme temperatures also sparked wildfires, damaged crops and reduced river levels, disrupting shipping, according to Agence France-Presse (AFP).

Germany recorded the second-highest absolute heat-related economic losses among the 30 European countries covered by the study, behind Italy at €28 billion and ahead of France at €20 billion.

Total estimated losses across the 30 European countries reached €113 billion.

The study also warned of potential economic risks from El Niño, saying the climate phenomenon could cost 144 economies around €392 billion in economic output next year and lead to further increases in food prices in Europe.

Allianz experts said economic damage linked to climate change is expected to persist in the coming year