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Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (39)	5/21/2003 4:47:47 AM
From: GUSTAVE JAEGER	Read Replies (1) \| Respond to of 594

Ultimately, the SARS psycho-plot will flop like the '97 Asian flu.... SARS will look like a mosquito bite on an elephant.... Last Updated: Monday, 19 May, 2003, 13:51 GMT 14:51 UK China's factory belt defies Sars Economic growth in China's biggest industrial powerhouse, the southern province of Guangdong, remains robust despite the outbreak of Sars, official statistics showed. Guangdong's gross domestic product (GDP) grew 12.8% in the first four months of 2003, compared to the same period of last year, the state-run Xinhua news agency said. Sars (Severe Acute Respiratory Syndrome) first appeared in Guangdong in November, though it was several months before local officials reported the emergence of the new disease. While Guangdong's globally significant factories are churning out goods unhindered, China's economy is expected to take a 30bn yuan ($3.6bn; £2.2bn) hit in lost taxes in 2003, according to national tax officials. Struggling service sector The authorities have offered tax cuts to struggling industries like tourism, tourism and restaurants to help them cope with a dramatic drop in business as tourists stay away and Chinese people stay at home. The State Administration of Taxation (SAT) predicted that tax cuts would cost it up to 20bn yuan in lost revenue, the official China Daily newspaper reported. SAT forecast that reduced economic activity would cut tax receipts by another 10bn yuan. But Guangdong's industries appear undamaged by Sars. China's emergence as a global industrial giant rests on them. Not only is Guangdong home to the world's biggest shoe factory, it produces one third of the world's hard disk drives and 10% of computer monitors. Initial fears that a widespread outbreak of Sars in factory dormitories might damage global trade have proved unfounded. Surging growth Guangdong's industrial output rose 19.2% year-on-year to 153.5bn yuan in the first four months of 2003, official figures showed. Investment in fixed assets - such as plant and machinery - rose 15.2% year-on-year to 91bn yuan. However, this represented a slowdown on 20.4% rise recorded in the first three months of the year. Guangdong's 12.8% rise in GDP also showed a slight slowdown, a barely perceptible 0.2% dip from 13% in the first three months. Foreign investment rose 22.4% year-on-year in the first four months of 2003, Xinhua said. Central government official predictions say China's GDP growth could slacken by as much as 2% because of Sars. Chinese officials' careers rest on achieving targets for economic growth and other goals. Observers believe this may have contributed to an initial reluctance to admit to the Sars outbreak. news.bbc.co.uk The SARS schemers: bilderberg.org