SHANGHAI: China’s economy is likely to pick up quickly after the Covid-19 coronavirus is contained and stage a "V-shaped” recovery, according to a senior official with the nation’s central bank.
The "sound” fundamentals of the domestic economy remain unchanged in the medium to long run despite a short-term slowdown due to the epidemic, Chen Yulu, a deputy governor at the People’s Bank of China, wrote in an opinion piece in the Financial Times dated Feb. 20. The PBOC summarised the column in a separate posting Sunday.
"China has sufficient policy space to support steady economic growth. China is one of the few major economies in the world that have maintained normal monetary policy, ” wrote Chen. "Equipped with a rich policy toolkit, China is capable of coping with various uncertainties.”
China has implemented measures including liquidity injections to the banking system and interest-rate cuts to counter the impact of the outbreak. With President Xi Jinping repeatedly assuring that China will meet its economic goals, financial markets have rebounded. Domestic stocks have restored more than $1 trillion in market value since tumbling in early February.
The country’s total infection cases rose to 76,936 as of Saturday, with total deaths of 2,442. - Bloomberg