China is considering additional measures to stimulate consumption

Ministry of Commerce of China said that the outbreak of coronavirus COVID-19 had a “relatively large influence” on the level of consumption in China, writes Reuters.

the Government will study the possibility of adopting additional measures to support, including the promotion of car sales.

the strongest influence on the consumption of coronavirus will in the first quarter. The government expects that activity will decline in March and will recover in the second quarter, said at a press conference, Deputy Director of market operations and consumption of Wang Bin.

“If the crisis caused by the coronavirus, will last a long time, the Chinese agriculture, the food industry and industries that involve long supply chains and are time-consuming, will be severely affected,” said Lee Singan, Director of foreign trade Department of the Ministry.

According to forecasts polled by Reuters experts, the growth of China’s economy in annual terms may slow in the first quarter to 4.5% from 6% in the fourth quarter of 2019.

to mitigate the economic consequences of the outbreak of coronavirus, the people’s Bank of China on Thursday lowered its new benchmark — the annual interest rate on loans to Prime borrowers (loan prime rate, LPR). The decline in LPR is to reduce the cost of borrowing for companies and consumers in the face of slowing economic growth.