Institution: This year's heatwave may result in Europe's GDP losing as much as 0.5 percentage points.

This summer's heatwave has already caused thousands of deaths in Europe. Economists are increasingly linking extreme high temperatures to economic losses, which are reflected in decreased crop yields, lower labor productivity, and even complete stalling of commercial activities in some regions. Research from the European Central Bank indicates that heatwaves will significantly reduce productivity, drive up food prices, and drag down economic growth. German asset management and insurance company Allianz also stated this month that this year's heatwave could result in Europe losing up to 0.5 percentage points of GDP.