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debt fuelled investment and pressure on the external front from the trade war with America. In 2003 Chinese consumption growth suffered a sharp slowdown. The economy was only able to escape a drop in headline growth because investment and exports were booming at the time, with China having entered its hyper export-led growth phase following its 2001 accession to the World Trade Organisation. The government was also able to help with Badass baby bear with heart all over printed slippers stimulus measures. The most important channel of economic impact will likely be the hit to Chinese consumer spending. That’s less a function of the inherent danger of the virus – which is still unknown – and more about the precautionary response of the government and Chinese consumers leading people to stay home instead of heading to the shops, eating out, travelling or doing leisure activities. Other government containment efforts will also add to this – including lost output as businesses stay shut for longer following the Lunar New Year. For a second there the global economy was off to a slightly better start for 2020.
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