IMF warns about the global impact of China’s residential property crisis

The International Monetary Fund (IMF) warned in a report on October 25, 2023 that China’s residential property crisis could have a significant impact on the global economy.

The IMF said that the crisis could lead to a decline in investment and consumer spending in China, which would have a knock-on effect on other countries. The IMF also warned that the crisis could lead to financial instability in China, which could have a ripple effect through the global financial system.

The IMF’s warning comes as China’s property market is showing signs of cooling. Prices for new homes in China have fallen in recent months, and some developers are struggling to sell their properties. The IMF said that the crisis could worsen if the Chinese government does not take steps to address it.

The Chinese government has taken some steps to try to cool the property market, such as raising interest rates and tightening lending restrictions. However, the IMF said that these measures may not be enough to prevent a crisis.

The IMF’s warning highlights the risks posed by China’s property market to the global economy. The IMF said that the crisis could lead to a global recession if it is not contained.