The epidemic of coronavirus infection was an unprecedented blow to China’s economic development, but the government is confident that it will be able to overcome the difficulties, Yan Pengcheng, director of the general economic department of the State Committee for Reform and Development of China, said on Monday.
China’s GDP in the first quarter of 2020 fell by 6.8%, the Chinese economy for the first time since 1992 showed a decline.
“The first quarter of this year was extremely unusual, the epidemic of the new coronavirus is the most acute crisis since the Second World War, becoming an unprecedented blow to China’s economic development, all the main macroeconomic indicators have fallen markedly”, – Yan Pengcheng said at a press conference.
At the same time, the official emphasized that when analyzing the economic situation in the first quarter, it should be borne in mind that the sudden outbreak of the epidemic sharply disrupted normal economic activity, production was suspended in many countries, and international trade and economic relations practically ceased.
“Economic activity during the epidemic cannot be compared with economic activity in normal times. Therefore, the economic downturn in the first quarter is not a reflection of the main situation with China’s economic development, it is the result of a sudden event”, – said Yan Pengcheng.
He added that the epidemic was an unprecedented test for the Chinese economy, in the process of combating it, the government had to pay a certain price to save lives. According to the official, the life and health of people has no price, so short-term economic difficulties are a justifiable fee.
He expressed confidence that China, relying on its huge domestic market, will be able to overcome the temporary difficulties that have arisen.