Real estate crisis, power outages, household consumption penalized by the coronavirus pandemic ... There are many brakes for China's economic recovery, points out the IMF in its progress report.

The Washington-based institution warns that "the recovery of the Chinese economy is well advanced, but it is unbalanced and its pace is slowing, even as the downside risks are accumulating."

Real estate was a major contributor to the post-pandemic recovery.

But the setbacks of the promoter Evergrande, threatened with bankruptcy with a debt of around 260 billion euros, cool potential buyers, which weighs down the sector.

China has also experienced power cuts in recent weeks that have resulted in full or partial plant closures, penalizing production and global supply chains.

There are many reasons for this, but mainly linked to the Asian giant's heavy dependence on coal, which provides 60% of its electricity production.

An 8% growth forecast

China was last year the only major economy to experience positive growth (2.3%), despite the health crisis that plagued global activity.

The International Monetary Fund maintains its forecast of 8% growth in the Asian giant's gross domestic product this year.

This would be the fastest growth rate since 2011 but this forecast is revised slightly down from the mid-year estimate of 8.1%.

For 2022, the IMF expects even lower growth of 5.6%.


The OECD raises its French growth forecast for 2021 to 6.8% and to 4.2% for 2022


China: Evergrande, ultra-indebted developer, claims to have handed over their keys to 57,000 owners

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