New Research Compares US vs. China Stimulus Packages
- SmithStreetSolutions Predicts Stimulus Packages Will Drive $572.9B in Imports November 11, 2009 10:19 AM Eastern Time
NEW YORK--(EON: Enhanced Online News)--SmithStreetSolutions, a leading consulting and advisory firm based in Shanghai an today announced the publication of its whitepaper: Initiative in Crisis: The Effects of the US and China Economic Stimulus Pa Recovery. The study examines the US and China’s responses to the financial crisis, including:
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A comparison of 10 different stimulus spending categories shows that the largest portion of the US stimulus (27.1%) is relief, while the China stimulus is weighted toward infrastructure development (37.5%). The US is spending 16.0% of the sti and training, whereas China is only spending 1.3%; however, a significant portion of the China stimulus is targeted at rural de post quake reconstruction (34.3%). China and the US agree on the importance of Technology and Sustainable Development with both countries allocati portions toward promoting technology sectors, representing 14.6% and 16.3% of their respective packages. Both stimulus plans are predicted to have great impact on the global economic recovery by supporting international trade 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 i predicted by other signs such as consumer confidence, which has increased to 69.4 in the US for October, an improvement f 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 m governments around the world to prevent economic collapse. For China, however, the crisis has been more akin to an opportunity,” head of investment research and analytics at SmithStreetSolutions. “SmithStreet’s research has shown a clear delineation between t approaches of the US and China, with the US stimulus focused on emergency measures to shore up the financial system and promo 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 approac led infrastructure development. The whitepaper’s side by side analysis of the two stimulus plans is broken down into 10 categories i Protecting the Vulnerable, Education and Trading, Healthcare, Energy and Sustainable Development, Infrastructure, Scie Technology Advancement, Other Social Programs, Tax Relief and Other, Post Quake Reconstruction and Rural Developme For a full copy of the whitepaper, please contact emily@blisspr.com About SmithStreetSolutions SmithStreetSolutions is a leading Research and Advisory firm based in Shanghai and New York. We draw upon our understanding market and our experience conducting market and investment research to provide the knowledge you need to make sound business consulting services are integrated with our Production services, providing both you and our teams with world class data analytics, d production, and translation solutions. For more information please visit www.smithstreetsolutions.com
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BlissPR Emily Weinman, 212-840-8079
emily@blisspr.com Permalink: http://eon.businesswire.com/news/eon/20091111005711/en