The Chinese economy is estimated to lose USD 196 billion

According to the latest news, the Chinese economy is estimated to lose USD 196 billion because of the spread of the Corona virus.

The Chinese economy is estimated to lose USD 196 billion in 2 months due to the epidemic. The outbreak of COVID-19 caused by the new strain of Corona virus could cost China more than the US $196 billion in the first two months of 2020.

Zhou Bin, former deputy executive director of the International Monetary Fund (IMF) on February 22, said that the COVID-19 epidemic caused by the new strain of Corona virus (SARS-CoV-2) could cause damage to China’s tourism industry. 900 billion yuan in January and February. Food procurement spending in the same period will also drop by about 420 billion yuan over the same period last year.

In addition to losses in other industries, Zhou estimated that the total damage to the Chinese economy in these two months was 1,380 billion yuan ($196 billion).

Speaking at the National Financial Research Institute at Tsinghua University (Beijing), Zhou said the losses were mitigated by industries benefiting from the epidemic, such as online education and entertainment.

The South China Morning Post quoted data from the National Bureau of Statistics of China, saying the above-mentioned losses accounted for about 3.3% of China’s total retail sales in 2019.

The consumption sector accounted for nearly 60% of China’s economic growth in 2019. However, with the country experiencing the COVID-19 epidemic, consumer activity has been severely reduced because many shopping and entertainment centers close the door.

The Ministry of Commerce of China said on February 21 that due to the COVID-19 epidemic, the consumer index will bottom out in March before reviving in the second half of 2020. Meanwhile, the chief economist of China According to China International Economic Exchange Center, even if production is recovered by 80% by the end of February, economic growth in the first quarter of 2020 will be below 4.5%. The same period last year was 6.4%.