Corporate saving ratios during the pandemic

Gabe de Bondt

Economic Bulletin Boxes, 2022, vol. 2

Abstract: This box analyses the development of the saving ratios of non-financial corporations in the euro area and in the largest euro area countries during the coronavirus pandemic. It shows that euro area corporate saving ratios came under pressure at the start of the pandemic but have reached record highs in recent quarters. Business saving has outpaced investment, resulting in historically high net lending of non-financial corporations. Given the importance of savings as an internal source of finance for investment and the high levels of the saving-to-investment ratio and net lending position of non-financial corporations, the prospects for business investment currently look positive from an internal funding perspective. JEL Classification: E21, E22, E32

Keywords: COVID-19; net lending; Non-financial corporations; saving ratio; investment (search for similar items in EconPapers)
Date: 2022-03
Note: 337418
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