As part of our partnership with Forbes magazine, read an opinion piece by Pierre-Michel Becquet, economist at BSI Economics, explaining why French people are saving more but not channeling enough of those savings into equity financing for businesses.
While the second lockdown is once again causing difficulties for many companies in France, French individuals’ savings are pouring into current accounts and other savings accounts, representing more than 75% of GDP. It is tempting to think that the solution to the problem is simple: channel these savings into financing French companies! But then, why is this money staying in savings accounts? Why are savers « managing their savings so poorly »? Why are business leaders unable to convince individuals to invest in their companies?
Click here to read the opinion piece
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