The International Monetary Fund (IMF) downgraded its 2023
and 2024 growth forecasts for China, saying its recovery was “losing steam” and citing weakness
in its property sector.
- expected China’s economy to by 5% this year, down from its previous forecast in April of 5.2%
- and 4.2% next year,
down from 4.5% - “In China, the recovery is losing steam, with manufacturing purchasing managers’ indexes
entering contracting territory from April to August and conditions in the real estate sector
weakening further,” - prolonged housing market correction in China would in the
near-term “trigger greater financial stress among property developers and larger asset quality
deterioration”