Quarterly review of China’s economic trends and developments
KPMG China has released the latest Q1 edition of the China Economic Monitor (CEM). The new issue analyses the latest trends in the macro economy and recent regulatory changes. China’s economy and society have been significantly impacted by the novel coronavirus outbreak (COVID-19). We expect far worse impact to macro economy by the epidemic in the short run than that in the time of SARS, and remarkably lower growth rate in Q1. Hopefully, the growth rate in Q2 will pick up, suppose the epidemic can be effectively contained by the end of February.
The impact of natural disasters on a macroeconomy are short-term, resulting in a V-shaped pattern in economic development. China’s economic growth outlook in the long run will not be changed by a single outbreak incident. Although COVID-19 has hit China’s economy hard, it has also created opportunities for new business models and given rise to new forms of business.
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