IMF Raises China's Growth Forecasts Despite Real Estate Sector Concerns

The International Monetary Fund (IMF) has raised its economic growth forecasts for China this year and next, but also warned of risks posed by the country's financial and property sectors. The IMF highlighted concerns about China's housing sector, which is facing falling prices, sales, and loan defaults by leading developers. It called for China to allow insolvent developers to exit the industry and find new ways to maintain economic growth beyond relying on investment and real estate. The IMF also raised questions about the banking system's financial reserves and warned of elevated financial stability risks.