IMF flags China’s lopsided economy as consumption share slumps and exports surge

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IMF flags China’s lopsided economy as consumption share slumps and exports surge

China’s economic engine is running on overdrive in factories but running on empty at home—creating a growth model the IMF believes is becoming increasingly unstable.

China’s growth is being driven overwhelmingly by exports and state-led investment, even as household consumption share and private-sector sentiment weaken sharply. The IMF warns that this widening imbalance—made worse by falling confidence, a property slump and rising industrial distortions—poses risks to China’s long-term stability.

<br>Shares in global manufacturing value China consumption gfx

Total investment as a share of GDP

​China’s investment by source

Final consumption as a share of GDP

Consumer confidence and real estate sector developments

Loss-making firms and inventories

Share of imports originating from China

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