Chinese authorities consider reducing their economic growth target this year as part of a broader review of the effects of the deadly coronavirus epidemic.

Typically, the annual target is presented in March during the session of the National Assembly of People’s Representatives, after being approved by state leaders in December. Economists expected China to aim for output growth of “about 6%” this year after the 2019 target was in the 6-6.5% range.

The change should not surprise economists and investors, who are already gearing up for weaker-than-expected growth amid demand risks and supply chains in the country. Bloomberg Economics estimates growth could decline to 4.5% this quarter.

Authorities in Beijing are also considering measures to stimulate the economy, including by setting a budget deficit to the gross domestic product (GDP) ceiling and selling special government securities, citing sources that requested anonymity. However, no final decision has yet been taken.

This year, the May 5 meeting of the Chinese Assembly may be delayed due to the effects of the country’s coronavirus.

Even before the outbreak of the epidemic, China’s economy had begun to slow down amid weak domestic demand, the fight against sovereign debt and the trade war with Washington. The country’s GDP grew by 6.1% last year – at least for nearly three decades, and only at the lower end of the Beijing government target.

According to Bloomberg Economics calculations, with severe but short-term consequences, the viral epidemic could shrink China’s GDP growth in the first quarter to 4.5% on an annual basis. This is a significant drop from the 6% for the last three months of 2019 and the lowest values ​​for the quarter since data collection began in 1992.

Even before the spread of the disease, China’s provinces have announced that they expect economic growth to slow in 2020, with at least 22 of the 31 leading cities, provinces and autonomous regions reducing their targets by January 21, official data show.

On Sunday, the Chinese National Bank took its first concrete steps to alleviate the effects on the markets and businesses of the coronavirus by providing short-term bank financing and lowering interest rates.

The institution provided funds worth 150 billion CNY (21.4 billion USD) on Monday through 7-day and 14-day reverse repo deals. The interest on both was reduced by 10 basis points.