The World Bank is predicting that China's economy, though hard hit
by the SARS epidemic, will still experience growth of about 7.3
percent by the end of the year.
China established a two-billion-yuan (about US$250 million) special
fund for the prevention and treatment of the virus. The fund was
earmarked for economic assistance for people unable to afford the
expensive disease treatment.
The May holiday suspension of securities and futures transaction
was extended an extra week, stopping transactions worth tens of
billions of yuan. The markets welcomed the decision, considering it
a "responsible measure to safeguard the health of investors", a
market analyst said on Wednesday.
China also canceled the May Day Golden Week holiday, a week-long
holiday celebrating International Labor Day, for fear that huge
movements of people during the holiday would spread the disease
nationwide.
Gao Qiang, vice-minister of health, said at a press conference that
despite the big losses China's tourism industry would suffer,
people's health was top priority.
The World Bank report said that China's tourism, transportation and
industry would be severely hindered by the epidemic disease, but in
the long run, China's strong domestic demand would still remain the
major impetus to economic growth.
(China Daily May 3, 2003)