Rising wages will put ‘squeeze’ on profits in 2024, Philip Lane warns

The European Central Bank chief economist forecast that many firms will be unable to pass on increased costs to consumers

Philip Lane, chief economist at the European Central Bank, said wage growth across Europe will be above 5 per cent this year and close to 5 per cent again in 2024. Picture: Fergal Phillips

Soaring wage costs and high interest rates will put a major “squeeze” on corporate profits next year, Philip Lane has warned.

The European Central Bank chief economist has forecast that 2024 will be worse for businesses than this year due to a number of factors.

“We think there’s going to be a fall in corporate profits next year. Already this year there’s been an easing in corporate profits and next year we think the fall ...