A pneumonia outbreak caused by the new coronavirus may have a bigger impact on China’s economy than the SARS outbreak in 2003. The outbreak will have a negative impact on the tertiary industry，household consumption，investment，export and employment. It will push up CPI and drag down PPI in the short term. To cope with the impact of the outbreak，China’s macroeconomic policy needs to be adjusted appropriately and the policy environment will be more relaxed. If the outbreak can be effectively contained in March 2020，its impact on China’s economy will be felt mainly in the first quarter. We should analyse the economic impact of the outbreak more fully. While preventing and controlling the epidemic，we should also do a good job in stabilizing the economy.