New Research Compares US vs. China Stimulus Packages
More News related to Press Releases
- Governments of Canada and Quebec Invest in Future of Charlevoix Tourist Train
- Canada's Government Awards Contract for Arctic Infrastructure Project
- Dex Hamilton Goes Global with New Movie
- Greenlight Search study reveals SkyScanner and EBookers top Google search results for Q3 2009
- Media Advisory: SDTC and the Government of Canada to Announce Funding for Innovative Automated Water Monitoring System
- SmithStreetSolutions Predicts Stimulus Packages Will Drive $572.9B in Imports -
NEW YORK--(BUSINESS WIRE)-- SmithStreetSolutions, a leading consulting and advisory firm based in Shanghai and New York, today announced the publication of its whitepaper: Initiative in Crisis: The Effects of the US and China Economic Stimulus Packages on Global Recovery. The study examines the US and China's responses to the financial crisis, including:
-- A comparison of 10 different stimulus spending categories shows that the
largest portion of the US stimulus (27.1%) is going toward tax relief,
while the China stimulus is weighted toward infrastructure development
(37.5%). The US is spending 16.0% of the stimulus on education and
training, whereas China is only spending 1.3%; however, a significant
portion of the China stimulus is targeted at rural development and post
quake reconstruction (34.3%).
-- China and the US agree on the importance of Technology and Sustainable
Development with both countries allocating significant portions toward
promoting technology sectors, representing 14.6% and 16.3% of their
respective packages.
-- Both stimulus plans are predicted to have greatimpact on the global
economic recovery by supporting international trade - calculations
estimate the US stimulus will drive $274.9 billion in imports, and
China's stimulus will drive $298.0 billion in imports.
-- Funds have been allocated, but the majority of the stimulus dollars have
not yet been spent in either country, so the impact must be predicted by
other signs such as consumer confidence, which has increased to 69.4 in
the US for October, an improvement from the low of 55.3 in November
2008. In China the IMF maintains a positive outlook, projecting China's
GDP will grow at 8.5% in 2009.
"For the United States and most of the world, the financial crisis has overwhelmingly been a disaster, and has required emergency measures by governments around the world to prevent economic collapse. For China, however, the crisis has been more akin to an opportunity," said Steven Lee, head of investment research and analytics at SmithStreetSolutions. "SmithStreet's research has shown a clear delineation between the stimulus approaches of the US and China, with the US stimulus focused on emergency measures to shore up the financial system and promote domestic consumption, versus China's stimulus which is driven by infrastructure development and long term growth of the economy."
The US stimulus package focuses on reigniting domestic consumption, while China's stimulus package takes a longer-term approach of Government-led infrastructure development. The whitepaper's side by side analysis of the two stimulus plans is broken down into 10 categories including: Protecting the Vulnerable, Education and Trading, Healthcare, Energy and Sustainable Development, Infrastructure, Science and Technology Advancement, Other Social Programs, Tax Relief and Other, Post Quake Reconstruction and Rural Development.
For a full copy of the whitepaper, please contact emily@blisspr.com
SmithStreetSolutions is a leading Research and Advisory firm based in Shanghai and New York. We draw upon our understanding of the China market and our experience conducting market and investment research to provide the knowledge you need to make sound business decisions. Our consulting services are integrated with our Production services, providing both you and our teams with world class data analytics, document production, and translation solutions.
For more information please visit www.smithstreetsolutions.com
Source: SmithStreetSolutions
Stocks Mentioned
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
