A worker carries potatoes at a wholesale market, which stays in business amid the current novel coronavirus outbreak, in Shenyang, northeast China's Liaoning Province, Feb. 4, 2020. (Xinhua/Yao Jianfeng)
PENT-UP DEMAND
Despite a gloomy consumption in catering and entertainment during the epidemic, domestic consumption is expected to rapidly rebound soon after the outbreak.
"Some entrepreneurs say that the epidemic may somehow bring down consumption for now, but it will not eliminate consumption. After the epidemic is over, the consumer market will usher in a green shoot and stocks will soon be digested," said Liu Zhicheng, director of the development and reform commission of Panjin City, Liaoning Province. He believes the novel coronavirus impact on the economy is short-lived.
According to Pan Gongsheng, vice governor of the central bank, the coronavirus impact on the economy will be "temporary." Pan said the economy showed strong resilience, and the country had sufficient policy space to stabilize economic growth.
The epidemic might disturb economic activities in the first quarter of this year, but the economy is likely to steady shortly after the epidemic is contained, as the unleashing of pent-up demands will make up for previous weak economic performance, Pan said.
"If the epidemic is under control, both online and offline consumption will significantly rebound with the recovery of transportation and logistics," said Gan Chunhui, vice president of the Shanghai Academy of Social Sciences.
