Chart of the week: Britain’s zombie companies

Britain is full of companies just muddling through rather than restructuring or expanding, preventing capital from reaching more promising businesses, and hampering overall productivity and growth.

667_COTW

Ultra-low interest rates and lenient banks, loath to crystallise yet more losses, are behind the trend.

The worry is that these firms, muddling through rather than restructuring or expanding, prevent capital from reaching more promising businesses, and thus hamper overall productivity and growth.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up