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European fires, drought take $5 billion toll

Drought and wildfires in Europe are likely to cause at least $US4 billion ($5.43 billion) of damage, according to Impact Forecasting’s monthly catastrophe report.

Many countries saw worsening drought and wildfire conditions last month, with hundreds of deaths and the agriculture, forestry, fisheries and water management industries affected.

Europe is suffering one of its deepest droughts on record. German farmers face economic losses of $US2.9 billion ($3.93 billion), according to various estimates.

Fires in Sweden caused more than $US100 million ($136 million) of damage last month.

Meanwhile, heatwaves killed more than 150 people in Japan and South Korea, while flash flooding in Japan killed 230 people and damaged nearly 50,000 homes.

Japan’s General Insurance Association reported 48,000 claims being paid at an initial cost of $US711 million ($964 million).

In the US, economic costs from Californian wildfires are expected to exceed $US1 billion ($1.36 billion).

Typhoon Maria in China caused nearly $US500 million ($678 million) of damage.

Flooding hit the US, Nigeria, Russia, India and south-east Asia and China last month, with economic losses nearing $US1 billion, according to Aon Benfield subsidiary Impact.