Global heatwaves and wildfires drive billions in economic losses through 2025–2026

Extreme heat and wildfires have inflicted hundreds of billions in insured losses, cut labour productivity, and strained power grids across multiple continents.

• Wildfires burned over 150 million hectares globally in the first four months of 2026, nearly 20% above the previous record for that period, according to data from World Weather Attribution reported by Reuters.
• Swiss Re reported that insured losses from natural disasters reached $107 billion in 2025 and projected they could rise to $148 billion in 2026.
• Allianz Trade estimated cumulative economic losses of up to $240 billion for France, $147 billion for Italy, and $131 billion for Germany from extreme heat between 2026 and 2030.
• The International Labour Organization forecast that heat stress could reduce global working hours by 2.2% by 2030, equivalent to $2.4 trillion in annual losses.