HSBC: China's demand has led to a big increase in export earnings of world commodity-producing countries

Source: Internet
Author: User
Keywords China commodity economist China
Tags agency asia-pacific consumption demand development export financial financial crisis
China News Agency, Shanghai, February 5 (Xinhua) HSBC Group chief economist Stephen and HSBC Asia-Pacific senior economist Neumann today commented that Chinese demand has led to a big increase in export earnings of world commodity-producing countries.  Domestic demand has now become a major driver of growth in China and Asia.  Two economists point out that China's savings rate is expected to fall by about 5% per cent over the next 3 years as the government increases social security and encourages consumption. Stephen and Neumann said commodity prices remained remarkably resilient during the global financial crisis, partly reflecting strong demand in the Chinese market. China is still at the stage of development, with China's demand for raw materials rising with the construction of roads, railways, bridges, airports, schools, hospitals and other infrastructure projects. China's fiscal stimulus in 2009 focused on a variety of infrastructure projects, with a significant impact on demand for raw materials and a sharp rise in commodity prices, which led to a surge in export earnings for other commodity-producing countries.  These countries include emerging markets such as Brazil, Chile and the Middle East oil producers, as well as major commodity-producing countries in developed markets, notably Canada, Norway, Australia and New Zealand. Export trade in economies such as South Korea and Taiwan has rebounded to close to pre-crisis highs.  Two economists said intra-Asian trade was a major driver of export recovery, while intra-Asian trade growth also benefited from increased demand for goods from China's peripheral markets.  However, Stephen and Neumann believe that the Asian recovery is not just an upturn in exports, but that domestic demand has become a major driver of growth in Asia, particularly in China. Two economists said that China's policy makers are interested in spending more of their financial resources on improving people's livelihoods and social development in 2010, and that investment in education and security-oriented housing, combined with a sharp rise in consumer credit, is expected to reduce the savings rate to 30% in the next 3 years. Finish)
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