Top EU Companies Are Capturing Larger Share of Profits

Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.

Top-performing companies in Europe have become more and more profitable over the last few decades, widening the gap with the rest of the market, according to Bloomberg Economics. Looking at returns, BE’s analysis shows a shift in the distribution across countries, though leading firms have been more successful in Sweden and the U.K., and to a lesser extent Germany and France. Rather than a sign of weakening competition, the skew in profitability appears to favor sectors and firms throughout the region that are more digitized and capital-light.