Bangkok--22 Apr--Standard & Poor's,
Standard & Poor's Ratings Services believes that the economy should be able to grow, albeit slowly, despite the winding down of the U.S. stimulus package, according to a special report published in the April 21, 2010 edition of CreditWeek.
"We expect a sharp jump in infrastructure spending in the next two quarters as states try to use available stimulus funds before the authorizations expire, which will cause a spurt in real GDP," said Standard & Poor's Chief Economist David Wyss in the lead article of the special report. "But after that, the problem will be weaning the economy from its reliance on fiscal and monetary stimulus."
The article explains that because the withdrawal of stimulus spending will likely be gradual, the economy should still be able to grow despite the drag of slower government spending. However, the withdrawal will probably result in this growth being sluggish.
The employment picture is looking more positive. The release of March employment data revealed that the private sector added 123,000 jobs, and revisions now show that employment increased in three of the past five months.
"We still expect a slower-than-normal economic recovery," said Mr. Wyss, "but it looks better than we feared three months ago."
The articles within the special report include the following titles:
U.S. Economic Forecast: Withdrawal Symptoms
The Mortgage Market Faces An Uncertain Future As Government Support For Banks Winds Down
For States, Fiscal 2011 Is The Turning Point
U.S. Higher Education Braces For More State Cuts As The Federal Stimulus Subsides
U.S. Surface Transportation Funding Gets A Temporary Lifeline
The reports are available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase copies of these reports by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request copies of these reports by contacting the media representative provided.
Media Contact:
Mimi Barker, New York (1) 212-438-5054,
[email protected]
Analyst Contacts:
David Wyss, New York (1) 212-438-4952
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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[email protected]
Americas Customer Service: (1) 212-438-7280
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