S&P Warns Virus Threatens to Dent China’s New Growth Driver
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Chinese consumption, a key growth driver in an economy transitioning from investment, is set to take a blow from the coronavirus outbreak that hit just as millions of people set out on vacation, S&P Global Ratings said.
If spending on things including discretionary transport and entertainment dropped by 10%, overall GDP growth would fall by about 1.2 percentage points, according to “back of the envelope” estimates from Shaun Roache, Asia-Pacific chief economist.