US Corporate Profits Hit Record 14% of GDP Before Tax
Before-tax US corporate profits as a share of GDP have climbed to an all-time high of 14%, nearly double the level from 2008. After-tax profits also reached a record ~11% of GDP.
US corporate profits before tax as a percentage of GDP have risen to a record 14%. That ratio has roughly doubled since the 2008 financial crisis and now surpasses prior peaks around 13% recorded in 1951, 2010, and 2011.
After-tax profits as a share of GDP also hit an all-time high of approximately 11%. For context, the metric averaged about 5% between 1980 and 1995.
The surge has been fueled by a sharp rise in nominal profits. After-tax corporate profits have jumped 101% since the 2020 pandemic, reaching a record $3.62 trillion.
Source: The Kobeissi Letter