Impact of the covid-19 on China’s economy

Abstract

What is the impact of the COVID-19 on China’s economy? After using the linear regression to analyze the data of GDP, national fiscal revenue and the added value of nine major industries, we find that the COVID-19 had a great impact on China’s economy in 2020 but not in 2021. Then, we use the principal component analysis to reduce the dimension of data and define a new variable to represent China’s economy, which is called “Chinese economic quantity”. It can well describe China’s economy, which has the same function as GDP. By comparing its changes in different years, it can verify the influence on China’s economy. Finally, some suggestions and advices will be given.

Keywords

• mathematical statistics
• linear regression