The Chinese central bank will increase economic support to cushion the blow from the outbreak of coronavirus, but activity is expected to recover only after the virus can be controlled, Central Bank Deputy Chairman Pan Gongsheng said on Friday.

"From the standpoint of monetary policy, the next step is to strengthen counter-cyclical adjustments, maintain reasonable and sufficient liquidity, and ensure good monetary and financial conditions for the real economy," he said."

In the context of the epidemic and downward pressure on the economy, it is important to maintain economic growth," the deputy chairman of the Central Bank added.

According to recent data, the number of victims of the virus has reached 636 people. Containment measures include travel curbs and closure of many establishments, which negatively affects the tourism and restaurant business, as well as other sectors of the economy, since many factories have stopped work.

Sources told Reuters that the Chinese authorities are preparing various support measures, including increasing government spending and lowering interest rates, fearing that the epidemic will drastically reduce GDP growth in the first quarter.

According to analysts, growth may slow down by 2 percentage points or even more. In the past quarter, the Chinese economy grew 6% YoY.

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