2024-04-25 14:32:11
China is deviating from its traditional engine of growth.
As Day.Az reported on Wednesday with reference to Trend, Tobias Adrian, financial advisor and director of the IMF’s Monetary Systems and Capital Markets Department, said this today during a briefing on the global financial stability report at the IMF Spring Meetings in Washington.
“China’s GDP last year exceeded expectations. For the full year, GDP growth exceeded 5 percent. Thus, the overall growth rate remains very high. Investment in the real estate sector has been the engine of growth for China for many years. There is a noticeable slowdown at the moment real estate investment, especially if you look at new housing construction, which has fallen very sharply. And this can certainly be considered a transition period in terms of the growth model that the authorities are very focused on,” he said.
The second aspect, according to Adrian, concerns the assessment of housing prices in China.
“We are seeing a decline in housing prices, they are quite moderate today. And this is certainly a strength in terms of financial stability. Investment in housing is the largest asset for most households. And, of course, banks have influence on the housing market Although there has been a decline in housing prices, it has not been extremely sharp. In terms of assessing the stability of the financial sector, it is important to consider the regional heterogeneity of housing markets. Some major cities continue to perform well in terms of housing construction, while other provinces perform poorly. We’re certainly also seeing this regional disparity in the banking sector, so some of the smaller banks and some of the weaker provinces are being hit harder by this than, say, banks in more developed provinces,” he added.
It should be noted that on April 15, the Spring Meetings of the International Monetary Fund and the World Bank Group started in Washington.
Major ministerial meetings and events will be held April 17-19, and other meetings will be held April 15-20.
Key events include meetings of the Development Committee and the International Monetary and Financial Committee of the IMF, which discuss the progress of the work of the World Bank Group and the IMF.
The Spring Meetings bring together central bankers, finance and development ministers, parliamentarians, private sector representatives, civil society organizations and academics to discuss issues of global concern, including the global economy, poverty eradication, and economic development.
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