China Is Perfectly Prepared to Fight the Last Virus
The economy has a much more sophisticated array of tools to boost growth than during SARS. Unfortunately, its problems are bigger.
I knew you were trouble when I walked in.
Photographer: HECTOR RETAMAL/AFPChina has a bigger and more sophisticated toolbox to combat any economic slowdown from the coronavirus than in 2003, when it battled the SARS pandemic. The challenge now is a worsening backdrop both domestically and abroad, and how both hamper the effectiveness of Beijing's response.
It's hard to be precise about the damage given the situation is still unfolding. Bloomberg Economics is likely to downgrade its projection for China’s first-quarter growth from its current forecast of 5.9%. When Severe Acute Respiratory Syndrome raged in the second quarter of 2003, China's expansion cooled to 9.1% from 11.1% in the prior three months.