China’s Stimulus Spending Will Buoy South America’s Mining Exports
MIN READJul 14, 2022 | 21:42 GMT
A miner works at the Kiara copper mine in Chile on June 22, 2021.
(GLENN ARCOS/AFP via Getty Images)
Chinese stimulus measures will likely ensure sustained demand for copper and iron ore despite the global economic downturn, enabling South American exporters such as Chile, Peru and Brazil to maintain high social spending and stabilize their governments. The Chinese government is estimated to spend over 3 trillion $450 billion in stimulus spending in the second half of 2022, including $75 billion in infrastructure funding, $160 billion in pledged State Council lending, and roughly $220 billion in possible advanced issuances of 2023 special purpose bonds quotas to local governments. The stimulus measures will mainly be directed towards infrastructure, including projects in the clean energy, transportation and information technology sectors. ...