*** China: According to the International Monetary Fund, growth will slow to 4.6% in 2024, and to 3.5% in 2028

(Il Sole 24 Ore Radiocor Plus) – Rome, February 2 – China's economic growth is likely to slow in the coming years, and will be weakened in particular by the uncertainties linked to the unprecedented real estate crisis and the international context.

This is what the International Monetary Fund said today.

The country's GDP is expected to slow sustainably to 4.6% this year and 3.5% by 2028, the International Monetary Fund notes in a report dedicated to China's economic situation. In 2023, China's GDP rose by 5.2%, slightly above the target set by Beijing, but the real challenge lies in 2024.

Real estate and exports have long been pillars of growth in the world's second-largest economy, each supporting several million employees.

But the financial problems faced by very large groups (Evergrande, Country Garden, etc.) are now fueling buyer distrust, affecting the activity of hundreds of thousands of subcontractors.

Moreover, Chinese exports recorded their first decline in seven years last year, as a result of geopolitical tensions and stagnant global demand. Speaking to various media outlets, Sonali Jain Chandra, head of the International Monetary Fund for China, stressed that “the real estate sector is going through a transitional phase that will take several years to become sustainable on a small scale, and we are only at the beginning.”

He stressed that this trend will continue in 2024. In recent months, the government has increased support measures for the sector, without immediate results. “There is still a lot to do,” Gene Chandra said.

Red Sim

(Radiocore) 02-02-24 11:03:52 (0239) 3 NNNN