China may cut its economic growth expectations for 2020 as the deadly coronavirus outbreak intensifies and continues to take a toll on the global economy
- Chinese officials are weighing options to mitigate the fallout from the fast-spreading coronavirus on the country’s economy, including lowering its 2020 annual economic growth target
- China may ultimately lower its GDP estimates, which had initially been targeting growth of about 6% this year after China’s economy grew just 6.1% in 2019—its lowest rate in almost three decades.
- The country’s growth target is usually first endorsed by top party officials then announced at an annual legislative gathering which is scheduled for March 5
- impact on China’s already slowing economy, which has had to cope with weak domestic demand, rising debt and fallout from the trade war with the U.S.
- Among other measures to mitigate the economic damage of the coronavirus, Chinese officials are also considering selling more special government bonds and increasing the planned cap on the budget deficit-to-GDP ratio