Report
Patrick Artus

Why is corporate investment not growing faster in the United States and the euro zone?

Corporate investment (whether in volume or value terms) has been growing slowly since 2008 in the United States and the euro zone, especially when measured in value terms. Yet: Corporate profitability has risen sharply; The real long-term interest rate is lower than the real growth rate; Investment needs and public support for investment are high. The slow growth in investment may be due to: High uncertainty about future growth, which is likely to be the case in the euro zone; The fact that, even though real long-term interest rates remain low, they have risen sharply since 2021; The slowdown in the supply of business loans; The increased demand for distribution of earnings to shareholders.
Provider
Natixis
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.

 

Analysts
Patrick Artus

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