IMF Warns China's Real Estate Crisis Could Hurt Global Economy

IMF warns China's real estate crisis could damage economy and spread globally. Developer debt and local government strains weigh on recovery.

Property investment and home prices declining. Investors worried about sustainability of local government financing vehicles (LGFVs).

IMF calls for "comprehensive strategy" to resolve LGFV debt issue. Sees capital losses for banks in severe stagflation scenario.

Recommends China facilitate housing project completion, restructure developers, restore buyer confidence to ease property woes.

IMF lowered China 2023 growth forecast to 5% due to property crisis. Sees distress spreading to stronger developers despite policy easing.