VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s economy is among the most exposed in the European Union to extreme weather events, according to new research by the European Central Bank and the University of Mannheim.
The study estimates that heatwaves, droughts and floods will slash EU-wide economic activity by €43 billion in 2025, equal to 0.26 per cent of total output. By 2029, the long-term damage could rise to €126 billion compared with a scenario without extreme weather.
Smaller economies such as Malta, Cyprus and Bulgaria face disproportionate losses. Malta’s Gross Value Added is projected to shrink by €236.5 million in 2025, or 1.14 per cent of 2024 output. By 2029, the loss could deepen to €609 million, nearly 2.93 per cent. That translates to around €401 per person in 2025 and more than €1,000 by 2029.
The warning follows a report by Malta’s Energy and Water Agency, which found the islands endured desert-like weather conditions between September 2023 and August 2024. It urged greater diversification of water sources and sustainable use of non-conventional supplies.
Across Europe, southern states such as Spain, Italy, Portugal and Greece face the largest absolute losses, mainly from droughts and heatwaves. Northern and central states including Germany, Denmark and Austria are more prone to flooding, though the financial toll is smaller.
The researchers caution that their figures may understate the true costs, as they exclude wildfires and the combined effects of droughts and heatwaves. They stress that economic damage often lingers for years, even without further extreme events.
“Extreme weather events are increasingly having substantial economic impacts in Europe,” the study concludes, warning that the risks will grow as climate change intensifies.
– Photo IPA Agency-
(ITALPRESS).
