After previous years showing savings flowing from emerging economies to developed countries, it is now the turn of global corporations – with never before seen high savings – to turn net lenders; and the fact is that nobody knows which way the levee would break in the coming years. According to the World Economic Outlook Report, 2006 (IMF), the corporate sector, which presumably should have always needed funds from other sectors, has actually instead turned out to be the net lender to other sectors. Savings by the corporate sector of G7 countries reached 2.5% of GDP (IMF), a level that has never been achieved in the past.
For Complete IIPM-Article, Click on IIPM-Editorial Column
Source IIPM-Editorial,2006
For Complete IIPM-Article, Click on IIPM-Editorial Column
Source IIPM-Editorial,2006
