Germany's economy could lose more than $23 billion a year if the country experiences severe heatwaves on a regular basis, according to a new study published on Thursday.
Economic research firm Prognos calculated that each day with temperatures above 35°C (95°F) could cost the EU's largest economy nearly $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 $7.25 billion.
Prognos said Germany could face three or four heatwaves of similar intensity each year in the future, pushing annual economic losses above $23 billion.
According to the study, manufacturing is the sector most affected by extreme heat, followed by health and social services, retail, construction and the food industry.
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.
