Bank of France assesses economic risks of ongoing heatwave
New Bank of France governor: extreme heat will hit bank assets, insurance and economic growth. The prime minister has activated emergency response mechanisms. The south west and north east are bracing for 39 degree heat.
As reported by CCTV+, repeated heatwaves are expected to slow France's economic growth, the new Governor of the Bank of France, Emmanuel Moulin, said on Saturday.
Moulin noted that the short term impact of high temperatures on the economy is difficult to assess, but in the medium term, extreme heat could easily trigger disasters such as fires and floods, negatively affecting bank assets, insurance operations and other sectors, thereby restraining economic growth.
According to the weather service, a total of 61 departments nationwide have declared an orange alert due to high temperatures, with maximum temperatures expected to reach 39 degrees Celsius in the south west and north east. On the same day, the French Prime Minister activated an inter ministerial emergency response mechanism to deal with the ongoing heatwave.
The Bank of France is the country's central bank, responsible for monetary policy and financial stability. The orange alert in France's warning system indicates that weather conditions pose a serious threat to health and economic activity.
Repeated heatwaves are not only an environmental but also an economic challenge: insurance claims, lower productivity, damage to infrastructure — all place a heavy burden on the budget. The summer of 2026 is already entering the history books as one of the hottest.
When the thermometer hits 39 degrees and an orange alert covers two thirds of the country, the economy ceases to be dry statistics. It becomes a burning reality. The Bank of France warns not of a crisis but of a slow suffocation. Fires, floods, insurance disruptions — they are all links in the same chain. And while the government throws all its agencies at the heat, farmers count losses and builders postpone work until evening. Heat is not weather. It is a new economic factor that cannot be ignored. And the next time we see an orange alert on the map, it is worth remembering: behind it is not just a forecast, but a price tag.
