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

This 'Statistics in Focus' is a new publication based on the national accounts data of the non-financial corporations sector. In 2007, which is before the ongoing slowdown, non-financial corporations were more profitable in the euro area and EU than in the United States. The highest share of operating profit in value added was observed in Norway and the lowest in the US. Such profit shares generally tended to increase over the 2000-2007 period, compared with the share of labour costs. This was the case in the US, the euro area and the EU (except Denmark, the Baltic countries and Italy). Non-financial corporations invested more in proportion to their value added in the euro area and in the EU than in the US. Highest investment rates were recorded in the Baltic countries and the lowest in the UK. Investment rates fluctuated over 2000-2007, with a net increase in Spain, whereas a net fall was recorded in Germany, the US and the UK.

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