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World Insights: U S new mega stimulus package may reverse market dynamics, experts say - World News

2021-03-12 06:35:52 GMT2021-03-12 14:35:52(Beijing Time) Xinhua English NEW YORK, March 11 (Xinhua) The new stimulus package worth 1.9 trillion U.S. dollars signed into law by U.S. President Joe Biden on Thursday could not only heat up economic expansion and inflation, but also reverse international capital flows, according to experts. U.S. real GDP will grow at over 7.5 percent in 2021 by using a fairly conservative assumption regarding the size of the fiscal multiplier, said Prajakta Bhide, U.S. economy and policy strategist with MRB Partners, a New York-based private research firm, on Thursday. The 1.9-trillion-dollar fiscal deal plus the 900-billion-dollar fiscal aid passed at the end of 2020 would amount to a stimulus of over 12.5 percent of GDP this year, noted Bhide.

U S $1 9 Trillion Stimulus Package Could Heat Up Economic Expansion

The new stimulus package worth 1.9 trillion U.S. dollars signed into law by U.S. President Joe Biden on Thursday could not only heat up economic expansion and inflation, but also reverse international capital flows, according to experts. U.S. real GDP will grow at over 7.5 percent in 2021 by using a fairly conservative assumption regarding the size of the fiscal multiplier, said Prajakta Bhide, U.S. economy and policy strategist with MRB Partners, a New York-based private research firm, on Thursday. The 1.9-trillion-dollar fiscal deal plus the 900-billion-dollar fiscal aid passed at the end of 2020 would amount to a stimulus of over 12.5 percent of GDP this year, noted Bhide.

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