China’s troubled real estate sector will continue to weigh on growth and will not be an engine of development until there is some “cleaning up” of the market, the chief economist of the International Monetary Fund (IMF) said on Tuesday (31).
Pierre-Olivier Gourinchas, speaking in Singapore about the IMF’s latest global growth forecasts, said that the reopening of China’s economy after tight restrictions against Covid-19 will trigger a recovery in growth in 2023, but this is not expected to be sustained in 2024 and beyond.
“Real estate is a very important sector, it has been one of the important components of growth in recent years and going forward this is something that will not be an engine of growth until there is some cleanup in this sector,” Gourinchas said at a press conference. .
Source: CNN Brasil
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