this price crisis For months punishing the economies of the Old Continent does not affect all pockets equally. While the vast majority of workers see their wages freeze or fall below inflation, and SMEs try to maintain positive balances, of companies IBEX 35 together they accumulate record profits. Energy companies and banking intensify the recovery in the profits of companies listed on the Spanish stock exchange. 60% higher Meanwhile, the wages of workers in the economy as a whole have been revalued at a significantly lower rate over the same period, notably since 2019 they have increased by 7.4% according to INE data, meaning they increased eight times less than the benefits of Ibex.
On September 21, the Solaria photovoltaic company presented its results for the first half of the year, the last of the 35 Ibex references, thus wrapping up a parade of figures that left the balance below. Among all, between January and June, Total profit of 31,310.5 million euros In the first half of 2022, it is 12.7% higher than the figure recorded in the same period of 2021 and 61.6% higher than the figure recorded in 2019 before Covid.
“When inflation rises to levels as we’ve seen there are always winners and losers. There are not only actors and workers, but also other actors, such as SMEs, who have the capacity to factor these price increases into their margins,” explains Pedro Aznar, professor of economics, finance and accounting at Esade. Ibex companies are among the firsts of a kind. bonanza oasis According to different sources consulted, this distracts them from the reality of majority in the Spanish business fabric.
Raymond Torres, director of state and international analysis for Funcas, draws on recently updated data from the central balance sheet of the Bank of Spain to support his thesis. According to them, last year job surplus increased by 4.3 percent Compared to 2019, the CPI effect is 2% below pre-pandemic levels at current prices, although discounted. In other words, business margins are increasing, but they are far from the growth recorded by listed companies.
“Even There is no homogeneous behavior in Ibex. UPF-BSM finance and accounting professor Andrei Boar says it’s clearly banking and energy references that explain such a marked increase in profits. “On the one hand, electricity consumption levels are now almost the same as a year ago, but at a much higher price. On the other hand, the increase in interest rates clearly benefits the banks. We’re already seeing how Euribor is rising and floating rate mortgages are getting more expensive. But this escalation is not included in the pricing of savings, which improves the intermediation margin of banks. Bank profits can be expected to increase further in the coming months,” said Pedro Aznar, professor of economics, finance and accounting at Esade.
wages below the minimum wage
“The pandemic blow has been detrimental to everyone, especially to companies, and inflation has a high cost, but above all for wage earners,” said Raymond Torres, Funcas’ director of situation and international analysis. Data from the quarterly labor costs survey supports this. According to them, effective hourly wage 7.4% Higher than in 2019, salaries are 3.8% lower today than they were before covid, even though the accumulated inflation is discounted.
“Companies themselves must be concerned with a relatively balanced evolution between profit and wage growth. Because an excessive or persistent imbalance can hinder the recovery of consumption and therefore affect investment itself, as the IMF or the G-20 has already warned”, points out the director of the international situation and analysis for Funcas. “Also, a inflationary spiral, because workers in a particular industry may feel that they are losing too much purchasing power, taking action, forcing higher increases, and having a cascading effect in other industries. This causes a loss of competitiveness in the entire economy. That’s why it’s so important to have a revenue agreement,” he adds.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.