Allianz Report: Global economic cost of climate crisis reached 184 billion euros

According to the 2026 Climate Economics Report prepared by Allianz Research and Allianz Trade, the global economic cost caused by extreme weather events in 2025 was recorded at 184 billion euros. Although a 32 percent decrease is observed compared to 2024, this figure remains 20 percent above the 2000-2019 average.

In the 2020-2025 period, the annual average economic loss rose to the level of 237 billion euros. Of the total loss of 184 billion euros that occurred last year, 69 billion euros consisted of insured damages, while 115 billion euros was determined as the insurance protection gap.

Allianz Research estimates that a strong El Nino event projected to occur in 2027 could cause 395 billion euros in net economic output losses. While approximately 60 percent of this loss is expected to be concentrated in China, the US, and India, it is predicted that El Nino could increase global headline inflation by 0.42 points and food inflation by 0.65 points.

Turkey was classified among the countries with high climate risk in the report. It was stated that the country deviates from historical climate conditions and is under high climate stress. The report emphasizes that preventive measures and investments in resilience should be increased instead of post-disaster intervention.