Towards a concentration of capital in the most attractive countries

The COVID crisis is eroding the financial situation of companies (fall in earnings and therefore in equity, increase in debt). Companies in OECD countries are therefore going to try to improve their profitability and their financial situation by shifting production to the most attractive countries: low labour costs, low corporate tax burden, not overly restrictive regulations, high labour force skills. Within the OECD, one should therefore expect to see an accelerated concentration of capital in the most attractive countries (central European countries, United States, Germany, Spain) at the expense of less attractive countries (France, Italy).