A man wearing a mask walks past the headquarters of the People's Bank of China, the central bank, in Beijing, China, as the country is hit by an outbreak of the new coronavirus, February 3, 2020.

China's economy could grow by less than 2% year-over-year, according to Pantheon Macroeconomics Chief Asia Economist Freya Beamish.

China said at the end of Monday that cases of the new coronavirus on the mainland have now surpassed 20,400 with a total of 425 deaths.

The rapid spread of the virus has sparked concern over the potential fallout for the world's second-largest economy, with businesses beginning to feel the impact from falling demand and the shutdown of huge swathes of the country, many of which serve as economic engine rooms.

Speaking to CNBC's "Squawk Box Europe" on Tuesday, Beamish said that China could be facing a quarter-on-quarter contraction in GDP (gross domestic product) for the first quarter, once the repercussions of shutdowns and an already slowing economy are factored into projections.