What is "Zombie"?
A zombie or zombie company is a business that is barely profitable now, and its outlook for future profitability is bleak.
These companies thrive in an environment of low-interest rates and a financial system that rolls over loans to loss‐making companies.
Zombie companies earn just enough money to continue operating and service their debt.
They have no excess capital to spur growth and are considered close to insolvency.
Even more loose monetary policy by central banks encourages this "zombification" process.
The number of zombie companies increased rapidly in the wake of the Great Financial Crisis.