Spain's wildfires: Counting the economic cost

Wildfires raging across southern Europe are leaving a trail of devastation, with Spain facing significant economic repercussions. Charred landscapes, melted infrastructure, and destroyed properties are stark reminders of the escalating crisis, which is projected to cost billions of euros.

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According to the European Commission, the economic impact of wildfires in Spain in 2022 amounted to approximately €7.1 billion ($8.1 billion), representing around 4.5% of the country's GDP. This figure reflects not only the direct costs of firefighting but also the long-term economic consequences of recovering the affected areas.

Spain's economy is particularly vulnerable, with approximately 206,000 hectares of forest already lost this year, according to the EU's Copernicus Earth observation system. An economist at the University of Barcelona estimates the economic impact of wildfires in Spain in 2022 alone reached €7.1 billion, or about 4.5% of the country's GDP. This figure encompasses not only firefighting costs but also the long-term economic consequences of recovery.

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The fires often devastate the local economy and disrupt trade in the affected regions.

The fires severely disrupt local economies, with tourism, a vital sector for Spain, being heavily impacted. The disappearance of this economic activity in fire-affected regions has significant repercussions. Climate economists have observed that regions experiencing wildfires see a decline in their growth rate, with multiple simultaneous fires exacerbating the economic slowdown.

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Tourism is also severely affected. Given Spain's strong dependence on tourism, the disappearance of this activity in fire-affected regions has particularly significant economic repercussions.

Adding to the concern, Spain has seen a dramatic decrease in investment in wildfire prevention. Official figures reveal that spending dropped from €364 million in 2009 to €144 million in 2024. This reduction in preventative measures contrasts sharply with the alarming increase in the frequency and scale of wildfires over the past decade, raising questions about the country's preparedness and response strategy.

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Our calculations are an average for the period from 2011 to 2018.