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💬Chinese Stimulus Insufficient to Address Deflation Risks, IMF Says

📉According to a senior IMF official, China’s recent stimulus measures fall short of addressing the deflationary risks facing the world’s second-largest economy.

📌Key Points: 
— While these measures might raise China’s growth forecast to 4.8% this year, the central government “must spend more” to stabilize the property market and reduce price pressures. 
— The IMF suggests China should devote around 5% of its GDP to housing stability, approximately 6.3 trillion yuan ($885 billion). 
— The property crisis has wiped about $18 trillion from household wealth, pushing China into its longest deflationary period since 1999.

🔍Without further stimulus to support domestic demand, China’s economic slowdown and deflationary pressures could deepen.

#China #Economy #Deflation #IMF #FinancialCrisis #DegenClub