The extreme heat and drought affecting large parts of Europe this summer could erase ​much of the economic growth expected across ‌the region, Dutch bank Triodos has said in a report.

The bank, which specialises in financing environmentally and ​socially sustainable projects, estimates that heat-related ​disruption could shave around 1 percent off the European ⁠Union’s gross domestic product, equivalent to roughly €180 ​billion ($208 billion) in economic losses, drivwoen primarily by ​weaker labour productivity.

Labour productivity losses alone could cut EU GDP by around 0.6 percent, while agricultural output is expected ​to fall by 3 percent to 7 percent.

"Higher food prices, constrained ​power generation and higher electricity prices, and disruption to roads, ‌rail ⁠and inland waterways add to the damage," Triodos said.

France is expected to be the hardest hit, with recurring heatwaves reducing GDP by around 1.4 percent and ​potentially tipping ​it into ⁠an annual contraction of 0.6 percent.

Italy, Spain and Belgium also face substantial losses, ​while countries such as Poland, which ​experienced ⁠fewer exceptionally hot days, are expected to be less affected.