The International Monetary Fund (IMF) has revised down China’s economic growth forecast for 2023 to 5.0% from 5.2%, citing a fading growth momentum following the early 2023 Covid-19 reopening surge. The IMF’s World Economic Outlook notes that high-frequency indicators indicate ongoing weaknesses, with the property sector crisis being a significant factor impeding growth. Amid an unprecedented property crisis affecting household confidence, the IMF also lowered its 2024 estimate to 4.2% from 4.5%. The report highlights the challenges in China’s key real estate sector, responsible for about a quarter of GDP, emphasizing the need for “forceful action” by Chinese authorities to prevent financial instability and restore confidence.