Allianz Research

Powering ahead:
Global Wealth Report 2025

Double trouble? Inflation means less cash and more debt for companies

Despite exceeding 2019 levels by 30% in Europe and 50% in the US as of Q2 2022, cash buffers are decreasing as most firms in both the US and Europe have been burning cash in 2022. Countries, sectors and firms now face different challenges. The energy crisis could be a major blow in Europe for energy-intensive sectors (Power, Paper, Metals, Railways, Chemicals etc.) while the strong dollar could harm exporting sectors in the US. 

Averting 'Gasmageddon' and securing a just transition

The gas crisis threatens to morph into “Gasmageddon”: Energy poverty is an old scourge in the EU, even before today’s energy crisis began. The situation has worsened significantly this year as the invasion of Ukraine has caused gas prices to explode to levels not seen in well over a decade. A dual-pricing scheme could address the shortcomings of the counter-measures implemented so far.

Green infrastructure investment

The war in Ukraine underscores that scaling up investment in climate-smart infrastructure is necessary to ensure energy and food security as we transition to a lower-carbon future.