China and Mexico will see a sharp increase in their exports to the United States as a result of President Joe Biden’s $ 1.9 trillion stimulus package, a study by Euler Hermes predicted.
China and Mexico will see a sharp increase in their exports to the United States as a result of President Joe Biden’s $ 1.9 trillion stimulus package, a study by Euler Hermes predicted Tuesday.
The fallout from the extraordinary stimulus package in the United States, including checks of up to $ 1,400 per person that have begun to be sent to American households, should generate an export surplus of $ 360 billion by the end of 2022, the insurer calculated. of credit.
Although some of the money will be used by Americans to pay their debts, some will also be spent and “the increase in domestic demand will not be fully absorbed by American producers,” predicts Euler Hermes.
Thus, this stimulus package could “generate an additional growth of Chinese exports to the United States of 60,000 million dollars in 2021-2022”, mainly of items such as computers and telephones, household appliances, and textiles.
After China, Mexico (+45,000 million) and Canada (+38,000 million) should also benefit from the stimulus, while in Europe it will be Germany that will fare better (+22,000 million).
Source: eleconomista.com.mx
