France sees limited economic hit from drought, heatwaves / Photo: © AFP
France sees limited economic hit from drought, heatwaves
Drought and record heatwaves across France this summer will shave 0.1 percent off the country's economic growth this year, adding to the heavy human toll, the finance ministry said Wednesday.
Harvests will suffer for a range of crops, with agriculture production set to fall eight percent this year, ministry officials told a parliamentary hearing in Paris.
France is one of the biggest grain producers and exporters in Europe, where farmers across the Continent were hit hard by repeated bouts of extreme heat that scorched fields and droughts that sent river levels dropping.
French corn production in particular is seen falling 35 percent this year, while overall fodder growth was a third below normal levels as of August 10, the officials said.
Other sectors were impacted by the heat but "the effects at the macroeconomic level should be more limited," according to a ministry document provided to journalists.
France's Environment Minister Monique Barbut said in mid-August that the direct and indirect impacts of the heatwaves would cost the country 10 to 15 billion euros ($12-$17 billion).
The French government forecast earlier this year 2026 GDP growth of 0.7 percent, but economists have warned this target is unlikely to be met after growth stalled in the second quarter and the economy contracted 0.2 percent in the first three months of this year.
(O.Tatarinov--DTZ)
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