Business profit share and investment rate higher in the EU than in the USA

European Commission Eurostat

Description

Profits and investment of non-financial corporations, 1995-2007
Economy and finance
Target audience: Specialised/Technical

Informations

• Publié par: EUROPEAN-COMMISSION-EUROSTAT
• Nombre de lectures: 18
• Langue: English

Extrait

Economy and finance Authors: Denis LEYTHIENNE, Tatjana SMOKOVA

S t a t i s t i c s i n f o c u s 28/2009

Business profit share and investment rate higher in the EU than in the USA Profits and investment of non-financial corporations, 1995-2007

In 2007, non-financial corporations were more the United States. Highest investment rates were recorded profitable in the euro area and EU than in the United in Latvia, Slovakia and Spain whereas the lowest were States. The highest shares of operating profit were found in the Netherlands, the US and the United found in Norway, Ireland and Slovakia. The lowest Kingdom. were recorded in the United States, France and Sweden. Investment rates fluctuated over 2000-2007 with a net The share of operating profit in value added generally increase in Spain while a net fall was recorded in tended to increase over the 2000-2007 period compared Germany, the US and the United Kingdom. with the share of labour costs. This was the case in the This analysis is based on a selection of indicators derived US, the euro area and the EU, notably in Poland, from national accounts that illustrate the behaviour of Slovenia, Germany and Slovakia. However, this share non-financial corporations as regards profits and fell sizeably in Denmark, the Baltic countries investment, before the ongoing economic slowdown. (Lithuania, Latvia and Estonia) and Italy. More information on concepts and methods is provided at Non-financial corporations invested more in proportion to the end of this publication. their value added in the euro area and in the EU than in PROFIT SHARES IN 2007 ¾Higher profit shares in the euro area (39.3%) and EU (38.7%) than in the US (29.3%) ¾Highest profit shares in Norway (57.6%), Ireland (54.1%) and Slovakia (53.6%) ¾Lowest profit shares in the US (29.3%), France (31.2%) and Sweden (31.6%)

110%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

-10%

IE NO

SK

Gross profit

LT

Chart 1: P rofit share of non-financial corporations in 2007 Share of gross operating surplus in gross value added

CZ

PL

FI IT LV AT DE HU*

EE

Compensation of employees paid

*2006 data

NL

BE

7 DK EA15 EU27 EU2 EA15

PT

ES

UK

S SI SE FR U U S CH*

Other taxes less subsidies on production

Source:Eurostat, OECD and US Bureau of Economic Analysis