The corporate investment rate, a leading indicator of future growth

Countries with a high corporate investment rate will normally have a higher growth rate than countries with a low rate. They will also be quicker to make the investments needed for the energy transition, to improve water management and to reshore strategic activities. Lastly, they will modernise their capital more quickly, and therefore have higher productivity gains. It therefore seems natural to us to be more optimistic about countries with a high corporate investment rate. We compare the total gross investment rate and the total net investment rate (excluding consumption of fixed capital) , both in value terms. By comparing investment rates in value terms, we avoid biases resulting from differences in the methodologies used to calculate quality effects . By comparing net investment rates , we correct for differences in methodologies used to calculate the lifespan of equipment, particularly technological equipment. We compare the United States, Canada, the United Kingdom, Sweden, Germany, France, Spain, Italy, Japan and Australia and see that countries with: A high gross corporate investment rate are the United States, Sweden, France and Japan; A high net corporate investment rate are only the United States and Sweden . Given the uncertainty surrounding the measurement of the lifespan of equipment, and the proportion of software investment, it is prudent to consider that only the United States and Sweden, out of the 10 countries studied, have a high investment rate.