In its latest review of the Chinese economy, the International Monetary Policy Fund (IMF) slashed its GDP forecast for the world’s second-largest economy from 4.4% to 3.2% this year.

Key takeaways

“The Fund expects China’s GDP at 4.4% in 2023 and 4.5% in 2024.”

China's rapid and broad-based economic slowdown blamed on strict COVID-19 lockdowns and its worsening property woes

"With a growing number of property developers defaulting on their debt over the past year, the sector's access to market financing has become increasingly challenging."

"Risks to the banking system from the real estate sector are rising because of substantial exposure."

Market reaction

The aussie shrugs off the IMF report, as AUD/USD Is rebounding 0.38% on the day at 0.6472, as of writing.