China's economic slowdown linked to real estate slump threatens recovery in 3-5 years.

China's economic slowdown is linked to a real estate slump affecting local government revenues from taxes and land sales. Analysts predict it may take three to five years for finances to recover, as falling property values and reduced land purchases have significantly impacted revenue, leading to rising debt levels. Efforts to shift policy from investment to consumption-driven growth are hindered by the urgency to stabilize debt. The situation has damaged business confidence and overall economic growth.

September 16, 2024
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