The State Council on Wednesday admitted that the economic loss caused by the outbreak of SARS was starting to emerge in China.

Senior leaders attending a meeting chaired by Premier Wen Jiabao urged everyone to keep such losses to a minimum without slackening efforts to tackle the disease.

Local governments and departments should improve their economic pointers and analysis of the economy, and resolve new issues promptly, participants in the meeting stated.

China's gross domestic product grew by 9.9 per cent in the first three months of the year.

But international observers have revised downwards their predictions for the nation's economic growth this year following the outbreak of SARS.

Yesterday's meeting put forward a comprehensive package covering areas from rural industry to consumption in an effort to counter the damage caused by the disease, which has now spread to many parts of China.

It highlighted the importance of stabilizing agricultural production and accelerating economic restructuring in rural areas, with a call to boost the incomes of farmers.

It called for more investment and faster construction of major schemes, and sought more input from treasury bonds and budgetary construction funds for projects crucial to the fight against SARS.

New engines for consumption and economic development should be cultivated. The meeting stressed industries such as automobiles, real estate, telecommunications and Internet-related business.

The meeting demanded efforts to secure an increase in trade in the second quarter of this year.

Exported products should be effectively quarantined, the meeting urged, calling for greater support for exports of electromechanical, high-tech and textile products.

Spending should be tightly controlled except for expenditure on the prevention and treatment of SARS.

Support for badly hit industries such as civil aviation, tourism, catering and taxis should be a policy priority, according to the meeting. Enterprises in SARS-hit areas should not fire employees at will, while local governments should provide assistance to those whose living conditions have slipped below the minimum level due to SARS.

The State Council also asked local governments and departments to take effective measures to ensure the transportation of important materials and daily necessities. The normal functioning of telecommunications, electric power, transportation, water and gas services, banks account settlement and stock exchanges was also essential.

(China Daily May 8, 2003)