Report
The divergence between corporate debt and both GDP and the capital stock
We look at the situations of the euro zone and France. Like after all recessions, we expect potential growth to fall after the COVID crisis. At the same time, corporate debt has risen sharply, but it is not financing investment; rather, it is offsetting the fall in revenues. This means that corporate debt is going to rise significantly relative to both GDP and corporate capital under the combined effect of higher debt and lower GDP and capital. This is obviously a very negative situation .
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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