At 8%, IMF Cuts China's Growth Rate For 2021 On Weakness In Real Estate

The eight percent prediction by IMF is down 0.1 percentage points from its July estimate as analysts warn China is facing a painful fallout from real estate weakness and shocks from surging coal prices

China's economy will grow slower than initially expected this year owing to a "stronger-than-anticipated" pullback in public spending, the International Monetary Fund forecast Tuesday while warning that a weakening property market could bring a further blow.

The eight percent prediction in the IMF's latest World Economic Outlook report is down 0.1 percentage points from its July estimate as analysts warn China is facing a painful fallout from real estate weakness and shocks from surging coal prices and shortages. But the figure is still China's strongest growth rate since 2011.The world's second-largest economy was the only major one to expand last year after the coronavirus pandemic forced governments across the globe to lock down. The IMF also lowered its outlook for next year to 5.6 percent.

Concerns over China have intensified in recent weeks as government curbs on the property market piled pressure on overleveraged developers -- notably Evergrande. Measures by local governments to meet short-term climate targets also led to a power crunch.

On Tuesday, the IMF said: "China's prospects for 2021 are marked down slightly due to stronger-than-anticipated scaling back of public investment."