Rising heatwaves in Italy are putting persistent pressure on the economy. Italian business organization Confesercenti stated that the annual cost of extreme heat to the country's economy could reach between 6 and 12 billion euros. This amount corresponds to 0.2 to 0.4 percent of the country's gross domestic product.

 

Confesercenti noted that extreme heat increases energy consumption. It also emphasized that it reduces labor productivity and forces businesses to make new investments to adapt to climate conditions.

 

Tourism sector also affected

 

According to Confesercenti's assessment, experiencing extreme heat for 30 to 60 days a year leads to noticeable consequences in many areas of the economy. Increased energy costs, decreased productivity in workplaces, climate adaptation investments, and weakened consumer spending are among the main components of this cost.

 

The organization reported that revenue losses have begun in sectors most exposed to high temperatures. Changes in consumer behavior have also started to affect tourism demand.

 

"Extreme heat is now a climate tax"

 

Confesercenti President Nico Gronchi described extreme heat as "a real climate tax." Gronchi stated that it has now become a permanent economic factor, not a temporary one.

 

Gronchi stated that rising temperatures affect investment decisions, labor productivity, consumer spending, and travel habits. He particularly noted that the tourism sector is more affected by prolonged heatwaves.

 

Call for long-term adaptation policies

 

Nico Gronchi noted that households and businesses alone cannot cope with the economic consequences of climate change. He emphasized that long-term and structural measures must be implemented for the economy to adapt to changing climate conditions. 

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