S&P: Coronavirus will deliver a short-term blow to China’s Q1 economic growth

S&P global ratings is out with its assessment of the impact of the coronavirus outbreak on the Chinese economy.

Key Quotes:

Coronavirus will deliver a short-term blow to economic growth in the first quarter in China.

Assuming coronavirus is contained in march, expect China’s GDP growth rate to recover firmly in Q3, before rebounding in 2021.

Expect small and medium-sized restaurant firms to come under stress in china from coronavirus, as store closures pile on liquidity pressure.

Believe the long-term outlook for hardware and software remains positive in China.

Structured finance sector is expected to see a short-term impact from coronavirus.

Coronavirus has highlighted vulnerabilities that exist across China's tourism sector.

Earlier today, S&P said that it sees “material knock to growth” for Australia from coronavirus and therefore the RBA will be forced to cut rate further.