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      Opinion: The Real Economic Damage Won't Come From the Coronavirus, But the Stimulus That Follows

      2020年02月11日 19:54 来源于 财新网
      Looming excessive debt means the negative impact of the virus may be more medium-term than immediate
      We should all be expecting unequivocally lax demand policies from the Chinese government in the days, weeks and months to come, writes economist Alicia García-Herrero. Photo: IC Photo

      The coronavirus outbreak has struck yet another blow to the Chinese economy after the improvement in business confidence since the phase one trade deal was announced in mid-December. How severe the impact of the coronavirus may be on the Chinese economy will depend not only on the extent and depth of the virus outbreak, but also on the government response. The central bank’s immediate and bold reaction to calm markets with the equivalent of USD 170 billion in a liquidity injection says it all about the pressure for Chinese policymakers to mitigate the impact of the coronavirus outbreak on financial markets, on sentiment and on the Chinese economy more generally.

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