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Corporate saving ratios during the pandemic

Author

Listed:
  • de Bondt, Gabe

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

Suggested Citation

  • de Bondt, Gabe, 2022. "Corporate saving ratios during the pandemic," Economic Bulletin Boxes, European Central Bank, vol. 2.
    • Handle: RePEc:ecb:ecbbox:2022:0002:4
    Note: 337418
    as

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    File URL: https://www.ecb.europa.eu//pub/economic-bulletin/focus/2022/html/ecb.ebbox202202_04~5cff93dfe9.en.html
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    More about this item

    Keywords

    COVID-19; net lending; Non-financial corporations; saving ratio; investment;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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