Monday, November 2, 2009

Gradual Growth of US Economy in 2010

US Economy will recover in 2010 and LED business will be continued to be in prosperity in 2010

Barack Obama A positive sentiment of the US Economy and causes market to go up possibly by 10-30 percent as of 2006-2007 corrected stock levels.

United States Military Expenditure cuts by more than 600 Billion Dollars by calling troops from both Iraq and Afghanistan. US Dependency on oil reduces significantly.

United States expects a mere 2-3 percent GDP growth this year like other years.

If they are saving a lot on mainly the Army it can easily turn things around.US has run into so-called crisis since Sep 15 2008, when Lehman Brothers broke down and that means now people would be using all their skills which will make the competition so strong among US Companies that other companies would have to move to United States in order to have the same benefits. US would end up being a super hub of what its now.

The outlook said economic activity in the US was expected to fall by 2.8% this year, better than the 4% decline predicted three months ago. Growth of 0.9% is forecast for 2010, up from zero in March 2009.

Expansion in developing countries is helping to offset the weakness of the rich western economies, even though growth was lower than during the boom years earlier in this decade.

China, helped by a "National major stimulus" package, should see growth of 7.7% this year, rising to 9.3% in 2010

Indian growth is predicted to be 5.9% in 2010, accelerating to 7.2% in 2010.

Brazil will contract by 0.8% this year, rebounding to 4% expansion in 2010.

Russia's economy will shrink by 6.8% this year but grow by 3.7% in 2010.


The economic of Britain is on the way to lose its market supremacy and competition, they will suffer in 2010

Suffer the down turn since 1989 will not be able to see any change for better sign in coming 2010-2011. Will seek CM and shifting factory to overseas. A benefit for us as the buying decision will be more localized.

IMF CommentThe U.S. economy will end the year mired in recession before mounting only a weak recovery in 2009,.

Majority of US Companies
New research from Deloitte issued today shows that although most major companies surveyed believe that the U.S. economy will start improving in early 2010, many of those same companies will lag behind the general economy when the rebound occurs. The reason: Too much focus on short-term, tactical actions and little attention to structural changes and strategic investments that are needed to support growth in the new business environment.

Approximately 55 percent of companies surveyed feel the U.S. economy will start showing signs of recovery in the first or second quarter of 2010; though 25 percent think relief won’t come until the third quarter or beyond. But, when the upturn does commence, Deloitte believes many companies will struggle to deal with the new economy, which will likely be a completely different playing field from what companies have seen in previous recoveries.

Stronger US Dollar
We can see US dollar is stronger than two months ago US Government will increase interest rate 2010. and less cash will be pumped into the stock market. That will be a way to cool down the mortgage business in USA. Stock market is truly a way to reflect the quality of the companies. Less chance to have stock bubbles burst! That may have bad effect on export but balanced with good buying power for importing oil.

My vision that the US economy will be in a way to grow in Q1 2010, target to have net GDP growth of 1-2.5% in 2010.

HK Snob

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