France, March 17 -- Severe drought episodes could cost Paris and its surrounding areas up to €2.5 billion in economic damage by the end of the century, a report published Monday by the Organisation for Economic Cooperation and Development (OECD) warned.

While the French capital hasn't yet experienced the extreme water shortages seen in cities like Barcelona and Cape Town - where authorities imposed tough restrictions and rationing measures - climate projections suggest conditions are set to worsen, particularly after 2050.

The study warns that a major drought could "gravely disrupt economic activity" in the Île-de-France region that surrounds Paris, with the agricultural and manufacturing sectors hit hardest.

"The robust his...