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China’s think tank economist: GDP goal on track despite virus impact

China remains on track to achieve its long-term goal of doubling gross domestic product (GDP) and incomes this year despite the impact from a coronavirus outbreak, Cai Fang, the Vice Head of Chinese Academy of Social Sciences (CASS), said in an interview with the People’s Daily on Wednesday.

Key Quotes

The virus outbreak will only have a one-off hit on the economy and demand will recover quickly.

Although the temporary impact caused by the epidemic will slightly reduce the growth rate and other development indicators, it will not delay the fulfillment of the goal of building a moderately prosperous society.

The government should use policy tools in a timely and flexible way and adopt unconventional policy tools, to support the economy.

Markets show little reaction to the above comments, as the risk-on trades remain in vogue amid receding China coronavirus fears, as new cases slowed down amid rapid containment efforts by Beijing.

USD/JPY trades better bid around 109.85 region, the US Treasury yields rebound nearly 2% while the safe-haven gold trades modestly flat near $1570.

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