At the end of 2019, the COVID-19 pandemic broke out in a big way and soon spread across the world. Among other things, another pressing concern for the entire society is how the outbreak will affect the national economy. One of the main areas of study in today's society is how the epidemic will affect the economy. Researchers have investigated the significant impact of the Chinese economy on the New Crown epidemic, yet current explanations of the impact are rather scattered. Therefore, the effect of the epidemic on China's real economy serves as the study's central focus. In this paper, GDP data is collected and analyzed in a comparative manner. The results show that the real economy was severely affected by the decline in GDP due to the epidemic. At the same time, the article discusses fiscal and monetary policies and analyses how solutions can help people and businesses.