Part 5/9:
The inflationary pressures that emerged in 2022 and 2023—driven by heightened consumer demand post-pandemic and surging commodity prices—have adversely impacted real wages across Europe. By the end of 2022, real wages were down by roughly 6% compared to pre-pandemic levels. Although wages are beginning to inch up, they have yet to recover fully, dampening consumer confidence and consequently reducing domestic demand for manufactured goods.