Heatwave to cost Swiss economy CHF 400 million

Heatwave to cost the Swiss economy 400 million in 2026 Keystone-SDA

The hot summer of 2026 caused economic damage amounting to CHF400 million in Switzerland.

And weather events could also result in high costs next year, according to a study by the credit insurer Allianz Trade.

Labour productivity also suffered as a result of the extreme heat this summer – longer breaks were necessary, and there were absences due to illness.

According to Allianz Trade, the economic losses amount to CHF400 million, which corresponds to around 0.05% of gross domestic product. The credit insurer is working with Allianz to analyse the impact of extreme weather events on the economy.

The findings are to be published annually from now on in the Allianz Climate Risk Tracker study.

“Climate change is increasingly becoming an economic factor,” said Jan Möllmann, CEO of Allianz Trade in Switzerland. Following the hot summer, the next climate phenomenon – the already very strong El Niño – is just around the corner.

This could cost the global economy around $451 billion in 2027. China, the United States and India would collectively bear almost 60% of these losses. For Europe, including Switzerland, a net loss of around €21 billion is expected.

The study concludes that adaptation and preparedness are crucial for economic resilience. Countries with established early-warning systems, risk maps and clearly defined responsibilities are better prepared for climate risks.

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Translated from German, reviewed by an English Department journalist.