Can demand permanently shift in favour of goods?
The shift in demand in favour of goods and at the expense of services is the main explanation for the sharp rise in the prices of commodities and in various intermediate consumption by companies. This shift can be a temporary phenomenon at the end of a crisis, but can also be permanent. This is because: The digitalisation of the economy is leading to an increase in demand for electronics, robots, etc., and an increase in logistics; Working from home is leading to an increase in purchases of electronics and durable goods for the home; The energy transition is leading to massive purchases of equipment (wind turbines, electricity grids, electrolysers, etc.), and investment in thermal renovation of buildings. If these developments lead to a lasting increase in demand for goods, they will also lead to a lasting rise in commodity prices.