Box sets » GDP by income » Corporate profits

Explaining corporate saving

Explaining corporate saving
The corporate sector had run a significant surplus of profits over investment since 2003, and this surplus rose sharply following the crisis. This box explored some of the possible reasons for this, including the possibility that businesses may have used this to build up a buffer against future shocks. The box also discussed the uncertainties around the existing data, which may have overstated corporates' holdings of cash reserves.

Economy categories: GDP by expenditure, Business investment, GDP by income, Corporate profits

Cross-cutting categories: Financial sector