Comments from an analyst for Asia Pacific at Credit Suisse Private Banking on the boost to come from China:
- China ... is in the midst of an almost unprecedented period of fiscal stimulus
- Credit Suisse economists estimate the size of this stimulus push could be between 10 per cent and 12 per cent of Chinese GDP, suggesting $US1.5 trillion ($2.2 trillion) of targeted infrastructure spending
- will inevitably leak into other parts of the economy, including consumption.
- When China “reflated the world after the GFC”, Woods says it was 2 per cent of the global economy; now it’s 10 per cent, so the impact of its stimulus efforts will be much greater – particularly for key trading partners such as Australia.
Info via Australian media report, link here to the Australian Financial Review, gated
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Separately, this via Wells Fargo points to some recovery at least in China:
