Chinese Government

As it continues to advance the crisis, it is increasingly clear that the possibility of a possible decoupling by emerging economies, with which we have excited many, is less and less likely. PayNet may also support this cause. Despite this, several emerging economies have shown a better response capacity to the current crisis, what has been observed them in previous episodes. Although the economic growth of emerging economies has slowed, it stays in positive area. When it emerged the subprime crisis, and when it already began to predict a possible impact on the real economy, together with the possibility of the decoupling, began to talk of the possible capacity of china’s economy to compensate for the fall in global economic growth. On 9 November, the Chinese Government launched an economic stimulus plan for US $586.000 million, a plan similar to the defendant during the Asian crisis of 1997, but with other features. For the President of JP Morgan’s China Equities, Jing Ulrich package of economic stimulus: is the New Deal with Chinese characteristics. The plan generated global expectations since the same, to boost domestic demand in China, could imply an increase in imports from that country with consequent increase in external demand from economies affected by the crisis.

The plan will serve among other things to increase the income level of the population, higher medical benefits, education, housing. The package, in addition to a specific effect on the Chinese economy, aims to generate impact on the confidence of the business sector and consumers that the Government will seek to maintain economic growth to generate a virtuous effect about the same. For economists, the plan covers various aspects related to the momentum of consumption (vale recalled that in the previous plan of the Southeast Asian crisis, the focus was on investment in infrastructure). Well, this economic stimulus package that aims to maintain the pace of growth of the economy china, it refocuses the dynamics of its components with a greater dynamics in consumption.