A regional perspective: Global metals outlook
Part two in a three-part series on the future of the global metals industry
In response to the current economic downturn, governments around the world are taking extraordinary measures to stimulate local economies. From incentives to encourage consumer spending on automobiles to massive infrastructure programs, many of these measures hold the potential to significantly impact the global metals industry. But will these actions jump-start local economies and in turn revive the global metals market?
Deloitte Touche Tohmatsu’s Global Manufacturing Industry Group turned to a panel of metals industry leaders from Deloitte member firms around the globe, including in China, Brazil, Europe, Japan, India, Russia, South Korea, and the United States. The report entitled “A regional perspective: Global metals outlook”, provides an in-depth look a stimulus package implemented around the world and the long-term effects on the global metals industry.
The report first focuses on the specific stimulus plans and the affect they will have on the global economy in 2009. The panel in the United States, Japan, and Korea shared a common concern of the limited impact their country’s stimulus packages will have on the economy. In the BRIC countries, Brazil anticipated a positive impact on the metals industry due to the steady demand and increased credit approval. Russia felt a sense of optimism through the high levels on infrastructure and possibility of the government purchasing inventory. India was taking a “wait and see” approach and China believes the impact will not be immediate.
The report shares additional measures that need to be taken to stimulate the global metals industry including incentives to purchase new cars, effective political policies, and ease of credit to boost consumer spending. Finally, the report provides a global perspective on recovery signs including merger and acquisition (M&A) activity, increased consumers spending, and the automotive industry gaining strength and momentum.
Read the press release.
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