Most pressing, however, is its real estate trouble, which the International Monetary Fund characterized as a historic bust matching levels only seen in the worst collapses of the last three decades.
AdvertisementYears of overreliance on real estate as an engine of the economy has led to a buildup of risks, the researchers said.
Now, Beijing must clean up distressed developers like Evergrande and Country Garden, support falling real estate prices, and figure out how to put the sector on a more sustainable path.
The collapse has transpired at "a historically rapid pace only seen in the largest housing busts in cross-country experience in the last three decades," researchers said.
"Large public subsidies in the previous decade helped millions of people move to newer housing from older buildings lacking modern amenities.
Persons:
Henry Hoyle, Sonali Jain, Chandra, homebuyers
Organizations:
International Monetary, Business, Housing, IMF
Locations:
Beijing, China