The slowdown in real estate is the main reason for China's sluggishness, Krishna Srinivasan, director of the Asia and Pacific department at the IMF said.
"There has not been a comprehensive response to the problem and that has weighed both on investment in the real estate sector and consumer confidence."
"One would have hoped that after China reopened, consumption would come back very strongly, but that has been undermined by confidence not coming back in the real estate sector," Srinivasan said.
"A lot of the wealth is in the real estate sector, and that has not been resolved."
The IMF trimmed its 2023 growth forecast for China's economy from 5.2% to 5% in its October update of its World Economic Outlook.
Persons:
China's sluggishness, Krishna Srinivasan, Srinivasan
Organizations:
Economic, International Monetary Fund, IMF
Locations:
Asia, Pacific, China