MARRAKECH, Morroco : China’s weak recovery and the risk of a more protracted property crisis could further dent Asia’s economic prospects, the International Monetary Fund (IMF) said on Friday, warning of a cloudier outlook for the once fast-growing region.
China’s post-lockdown economic boost lost momentum earlier than expected, the IMF said.
Meanwhile the strength of the U.S. economy has offered less support to Asia than in the past because it has been focused on the service sector, which does not fuel demand for exports, the Fund said in a blog on the region’s outlook.
“In the near term, the sharp adjustment in China’s heavily indebted property sector and the resulting slowdown in economic activity will likely spill over to the region, particularly to commodity exporters with close trade links to China,” it said.
“On the downside, a more protracted real estate crisis and limited policy response in China would deepen the regional slowdown.”
Source: Reuters
