China maintains its goal of GDP growth despite coronavirus exposure

UNITED STATES (OBSERVATORY NEWS) — China will be able to achieve its long-term goal of doubling GDP and income this year, despite the consequences of the outbreak of Coronavirus, said Cai Fan, deputy head of the PRC Academy of Social Sciences.

A virus outbreak will have a short-term effect on the economy, after which demand will recover quickly, Tsai wrote in an article for the People’s Daily newspaper.

“Although the temporary impact caused by the epidemic will somewhat reduce growth and other development indicators, it will not delay the fulfillment of the goal of building a moderately prosperous society,” the economist said.

According to him, the growth rate of about 5.7% this year will be sufficient to achieve the goal of doubling GDP and income.

The Chinese government should use policy tools in a timely and flexible manner and apply “non-traditional policy tools” to support the economy, Tsai added.

In 2019, China’s economy, the second largest in the world, grew by 6.1%. Growth rates have been minimal since 1990.

Earlier this week, Zeng Gang , vice chairman of the National Institute of Finance and Development, warned that a coronavirus outbreak in 2020 could slow China’s economic growth by 1 percentage point.

If the authorities’ response to the epidemic is sufficiently timely and effective, long-term growth trends will not suffer significantly, Zeng said.


This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.

Our Standards, Terms of Use: Standard Terms And Conditions.


Contact us: [email protected]

Stay connected with Observatory and Observatory Newsroom, also with our online services and never lost the breaking news stories happening around the world.

Support The OBSERVATORY from as little as $1 – it only takes a minute. Thank you.

We are OBSERVATORY — the only funding and support we get from people – we are categorically not funded by any political party, any government somewhere or from any grouping that supports certain interests – the only support that makes OBSERVATORY possible came from you.