COVID-19 and the Chinese economy: impacts, policy responses and implications

This article focuses on the Chinese experience in mitigating the influence of COVID-19 and addresses the impact of the pandemic on the world economy and, in particular, on China`s economy; examines Chinese policy responses to the supply and demand shocks in terms of fiscal and monetary measures, and considers gains and costs of those actions. Thus, the research is made from the stance of China, with regard to its slowdown which concerning economists and may be also aggravated by the trade confrontation. Considering the size of the Chinese economy in terms of global interdependence, its contribution to world growth, and growing weight in the international arena, this study makes timely contributions over determining of the global economic developments and prospects. The result of this study open new avenues for future research and may serve as the source of hypotheses for further quantitative research on Chinese economy and crisis measures amid global pandemic.

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Oil price shocks and policy responses in the post‐reform Chinese economy

The Journal of Development Studies ◽

10.1080/00220389408422353 ◽

1994 ◽

Vol 31 (1) ◽

pp. 179-200 ◽

Cited By ~ 2

Author(s):

Zhaoyang Peng ◽

Will Martin

Keyword(s):

Chinese Economy ◽

Oil Price ◽

Oil Price Shocks ◽

Price Shocks ◽

Policy Responses

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The Global Macroeconomic Impacts of COVID-19: Seven Scenarios

Asian Economic Papers ◽

10.1162/asep_a_00796 ◽

2020 ◽

pp. 1-55 ◽

Cited By ~ 14

Author(s):

Warwick McKibbin ◽

Roshen Fernando

Keyword(s):

Public Health ◽

Population Density ◽

Global Economy ◽

Healthcare Systems ◽

Chinese Economy ◽

Economic Costs ◽

Public Health Systems ◽

Policy Responses ◽

Short Run ◽

Macroeconomic Impacts

COVID-19 has disrupted the Chinese economy and is spreading globally. The evolution of the disease and its economic impacts are highly uncertain making formulation of appropriate macroeconomic policy responses challenging. This paper explores seven plausible scenarios of COVID-19 and the macroeconomic outcomes using a global hybrid DSGE/CGE general equilibrium model. The results demonstrate that even a contained outbreak could significantly impact the global economy in the short-run. Economic costs could be significantly avoided with greater investment in public health systems in all economies, particularly in economies where healthcare systems are less developed and population density is high.

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COVID-19 Pandemic Burden on Global Economy: A Paradigm Shift

10.20944/preprints202005.0461.v2 ◽

2020 ◽

Cited By ~ 1

Author(s):

K Taeen Zaman ◽

Hiya Islam ◽

Asir Newaz Khan ◽

Dipita Saha Shweta ◽

Ahsab Rahman ◽

...

Keyword(s):

Paradigm Shift ◽

Global Economy ◽

Chinese Economy ◽

Gdp Growth ◽

Economic Consequence ◽

Economic Costs ◽

Policy Responses ◽

Short Run ◽

Rapid Pace ◽

The Moment

The pandemic caused by SARS-CoV-2 virus obstructed the Chinese economy and has expanded to the rest of the world at a rapid pace affecting at least 215 countries, areas and territories. The advancement of the disease and its economic repercussions is profoundly ambiguous, making it challenging for policymakers to formulate suitable microeconomic and macroeconomic policy responses. The scenarios in this paper illustrate how an outbreak could significantly affect the global economy in the short run. It has been estimated that each additional month of crisis would cost from about 2.5-3% of the global GDP and that the GDP growth would take a blow, reaching about 3-6%, depending on the country. Scenarios also suggest that GDP can drop by more than 10% and even exceed 15% in some countries. Via addressing the economic consequence of COVID-19 in different industries and countries, the paper presents assessments of the likely global economic costs of COVID-19 and the GDP growth of different countries. Economies will be negatively affected because of the high number of jobs at risk. Countries highly dependent on foreign trade are more negatively affected. Given that disease and its economic influence are highly unpredictable in numerous aspects, the global economy at the moment is the most critically threatened in history.

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COVID-19 Pandemic Burden on Global Economy: A Paradigm Shift

10.20944/preprints202005.0461.v1 ◽

2020 ◽

Author(s):

K Taeen Zaman ◽

Hiya Islam ◽

Asir Newaz Khan ◽

Dipita Saha Shweta ◽

Ahsab Rahman ◽

...

Keyword(s):

Paradigm Shift ◽

Global Economy ◽

Chinese Economy ◽

Gdp Growth ◽

Economic Consequence ◽

Economic Costs ◽

Policy Responses ◽

Short Run ◽

Rapid Pace ◽

The Moment

The pandemic caused by SARS-CoV-2 virus obstructed the Chinese economy and has expanded to the rest of the world at a rapid pace affecting at least 215 countries, areas and territories. The advancement of the disease and its economic repercussions is profoundly ambiguous, making it challenging for policymakers to formulate suitable microeconomic and macroeconomic policy responses. The scenarios in this paper illustrate how an outbreak could significantly affect the global economy in the short run. It has been estimated that each additional month of crisis would cost from about 2.5-3% of the global GDP and that the GDP growth would take a blow, reaching about 3-6%, depending on the country. Scenarios also suggest that GDP can drop by more than 10% and even exceed 15% in some countries. Via addressing the economic consequence of COVID-19 in different industries and countries, the paper presents assessments of the likely global economic costs of COVID-19 and the GDP growth of different countries. Economies will be negatively affected because of the high number of jobs at risk. Countries highly dependent on foreign trade are more negatively affected. Given that disease and its economic influence are highly unpredictable in numerous aspects, the global economy at the moment is the most critically threatened in history.

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