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Frost & Sullivan Forecasts Early Rebound: Strong Growth Ahead for Global Economy
Date:2/17/2009

MOUNTAIN VIEW, Calif., Feb. 17 /PRNewswire/ -- Frost & Sullivan, the Growth Partnership Company, reaffirms its position that the economy is regaining its strength, thanks in part to an unprecedented US $1 trillion stimulus package from the US government and additional stimulus packages from foreign governments.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

"President Obama's stimulus package is clearly serving to convince businesses and consumers that we can get back on track," explains David Frigstad, Chairman of Frost & Sullivan. "The program will stimulate optimism and let the U.S. -- and the rest of the world -- get back to business."

Firm executives also cite the following critical indicators as evidence that confidence and prosperity will soon be revived.

    -- Existing U.S. home sales are up 4.91%.
    -- U.S. retail sales are finally in the black, with January sales posting
       an increase of 1% from the previous month.
    -- High GDP rates in emerging markets
    -- Near-zero fed rates and high dividends in emerging economy stocks

Frost & Sullivan believes that businesses and consumers alike are allowing fear to adversely affect their judgment. By cutting spending and cutting costs, they only serve to perpetuate the economic downward spiral. "This irrational behavior needs to cease," states Frigstad, "or else companies will not be able to recover and return to growth."

The strength of Asian banks and financial services firms gives an indication that Asian companies will lead the global rebound. "New capitalist entrants and emerging markets will become a powerful driver of the global economy, and will have a huge impact going forward," concludes Frigstad.

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