Advertisement
China coronavirus: public health measures will hurt economy in the first quarter, analysts say
- Effects of disease control policies could see ‘economic growth slow by as much as four percentage points’ in the quarter, Plenum Group says
- Lockdowns within Hubei province could depress national gross domestic product another 1.5 percentage points, it adds
Reading Time:4 minutes
Why you can trust SCMP
China’s already weakening economy is set to take another hit with businesses across the country remaining shut for an extended public holiday and tourism grinding to a halt, as authorities struggle to contain the pneumonia-like coronavirus that has spread across the nation.
Analysts said the virus control measures would affect first-quarter economic results, with a potential to spill into the longer term.
A former Chinese government adviser called for measures such as reducing the tax burden for small and medium-sized enterprises to stimulate the economy.
Advertisement
The China-focused research group Plenum predicted on Monday that effects of disease control policies could see “economic growth slow by as much as four percentage points” in the first quarter, amplified by the fact that the public health crisis is taking place during China’s peak travel season.
The government’s extension of the Lunar New Year public holiday period – which will keep workers at home for an additional three days until Sunday – could shave two percentage points off overall outputs in the first quarter, Plenum analysts said.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x