Cédric Duprez

Oct 7, 2024 | nbb.be | Gert Bijnens |Cédric Duprez |John Hutchinson |Peter Reusens

The recent energy price shock ate into the profit margins of most firms, across all sectors. Belgian data reveal that many regained profitability when prices fell back, but energy-intensive firms didn’t recover in the same way. This is unfortunate, not least for Europe’s ability to meet its climate objectives, as low profits make it harder for firms to finance green investments.

Sep 17, 2024 | einpresswire.com | Gert Bijnens |Cédric Duprez |John Hutchinson

Energy-intensive firms continue to suffer from low profits margins even as energy prices have fallen from their peak. The ECB Blog discusses implications for the green transition in the EU. Skyrocketing energy prices during the recent crisis ate into most firms' profit margins across all industries. Using Belgian data, we find that many firms regained profitability when prices fell again. But energy-intensive businesses didn't recover in the same way.