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
Separately, this via Wells Fargo points to some recovery at least in China: