The writer is the deputy governor of the People’s Bank of China
The Chinese government is taking forceful prevention and control measures in response to the recent outbreak of the novel coronavirus, known as Covid-19. The contagion has exerted some downward pressure on China’s economy, but it will not last long. Supported by a resilient economy and ample room for policy adjustments, the People’s Bank of China expects a quick recovery after the outbreak is contained.
Growth is slowing down in the short run due to the epidemic. Transportation, tourism and offline shopping have borne the brunt. Medical care, online shopping and the internet sectors are more resilient. Consumption of non-essential goods will drop temporarily, but the long-term trend of increased and upgraded spending remains well on course. Some small and medium-sized enterprises are running at partial capacity but have continued paying wages and other expenses. They face cash flow pressures at the moment.