Recurring heat waves could cost the Greek economy up to €13 billion and reduce economic output by 4.1 percent
between now and 2030, Allianz Trade has warned in a report, projecting that investment could fall by 8 percent, consumption by 4 percent, inflation could rise by 2.5 percent and unemployment by 1 percent.
The insurer said the effects would stem primarily from reduced worker productivity and higher energy costs.
"Heat waves are no longer a short-term weather phenomenon, but a structural economic shock," the report said, noting that economies with less capacity to absorb fiscal stress face the most severe exposure.
The warning lands as Greece is experiencing the first heat-driven pressures of the summer — with nearly 19,000 firefighters on standby for the wildfire season and a heat dome currently battering northwestern Europe, where at least 18 people have died.
The country's €13 billion exposure figure underscores the cost of climate adaptation failures at a time when Athens is simultaneously managing record tourism growth and the economic legacy of its debt crisis recovery.