February 21, 2024

IMF predicts that China’s economic slump would last until 2028.

  • February 2, 2024
IMF predicts that China’s economic slump would last until 2028.

Beijing: China’s declining productivity and increasingly aging population are likely to cause the Asian superpower to continue experiencing economic slowdowns in the coming years, according to a report released by the International Monetary Fund (IMF) on Friday, February 2.

Due to rising geopolitical tensions, a property sector debt crisis, and declining global demand, the second-largest economy in the world had some of its worst growth in decades last year.

Furthermore, an IMF analysis released on Friday predicted that growth would further slow to 3.5% by 2028 “due to headwinds from weak productivity and population aging,” with significant uncertainty around the prognosis.

It had earlier predicted a 4.6% increase for this year.

A protracted crisis in the nation’s real estate sector, which was once a major economic engine but is now engulfed in debt that could endanger China’s financial system, is the primary cause of the slowdown.

With staggering debts totaling more than $300 billion, real estate behemoth Evergrande has come to represent the industry’s problems.

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