The Impact of the Pandemic on Chinese Economy

DOI

10.2991/assehr.k.211209.406How to use a DOI?

Keywords

Covid-19; Chinese economy; IS-LM model; economic shocks

Abstract

The COVID-19 outbreak is an unprecedented and unexpected event in Wuhan, China, in Jan 2020. This fast-spreading influenza disease has great influence on the Chinese economy. This paper explores the impact of the COVID-19, distinguishing these as impacts on the economy’s demand and supply sides. For the demand side, the pandemic greatly depresses consumption, investment, government expenditure and exports. A short-term IS-LM model shows the immediate slowdown of the economic activities due to the impacts. Meanwhile, the economy’s supply side is largely affected when people are physically restrained, and the pandemic will lead to a 15.6% loss in labour. Although telecommuting is widely adopted, the effect of such practice is limited. In addition, rising costs of production in many industries also took place during the pandemic.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Yuning Li
AU  - Yingru Wang
AU  - Mingyang Chen
PY  - 2021
DA  - 2021/12/15
TI  - The Impact of the Pandemic on Chinese Economy
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2498
EP  - 2504
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.406
DO  - 10.2991/assehr.k.211209.406
ID  - Li2021
ER  -