Part 4/9:
The spike in energy prices following the Russian invasion of Ukraine has had dire consequences for the manufacturing sector. Although prices have moderated since their 2022 peaks, they remain elevated compared to pre-war levels and are substantially higher than those in jurisdictions like the US and China. The high cost of energy, particularly in energy-intensive industries such as chemicals and steel, has resulted in significant production declines. For instance, energy-intensive firms in Germany have scaled back production by as much as 20%, leading to plant closures and widespread layoffs.