The Misconception that “Because it grows faster, Germany should invest more than France”

12/20/2017 - Infographic and chart
ic_blogtagEconomic OutlookFranceGermanyGross Domestic Product (GDP)Investment

​The German economy has outperformed the French economy in recent years. Capacity utilization in the German manufacturing sector is above its long-term average. Thus, one could expect higher investment activity in Germany.


Yet in 2016, the investment-to-GDP ratio stood at 22% in France, and only 20% in Germany. The French public and corporate sectors have higher investment ratios than their German counterparts (+1.3 pp and +1.0 pp, respectively).​


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