Uncertainty surrounding China’s economy remains high this year, dragged down by the ongoing property market slump, the International Monetary Fund (IMF) said on Friday, while the Washington-based institution also urged Beijing to address gaps in its economic and financial data, reports the South China Morning Post. The IMF expects China’s gross domestic product (GDP) to grow by 4.6% this year, before slowing to 4% in 2025, as a result of ongoing property sector strains, which would further dampen private demand and confidence, and also add to local government budget strains.
“Uncertainty surrounding the outlook is high, particularly given the existing large imbalances and associated vulnerabilities,” the IMF said.
“Staff estimate that, in such an adverse scenario which entails a deeper and more prolonged contraction in the property sector, GDP in 2025 could be 1.8% lower compared to the baseline [of 4%].”