Outbreak threatens growth, food panic overdone

Our downbeat growth forecasts are largely based on expectations for a deepening downturn in construction and industry. But a worsening COVID-19 outbreak means the biggest near-term threat could be a renewed slump in services activity. And while there is a grain of truth in talk of food shortages in China, the big picture is that the country is not suffering from as much supply-side pressure on consumer prices as elsewhere.