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"
