China's Property Sector and Economic Stimulus: IMF Insights

IMF's Asia and Pacific Department calls for China to address property sector and reform its pension system, suggesting potential for increased economic stimulus. While Krishna Srinivasan emphasizes the availability of near-term space for stimulus, he notes that it needs to be balanced by fiscal consolidation in the medium term.

The International Monetary Fund (IMF) has urged China to take decisive action to tackle its property sector issues and explore possibilities for economic stimulus to invigorate consumption. This call for reform was made public by Krishna Srinivasan, the director of the IMF's Asia and Pacific Department, during a Thursday news conference.

Srinivasan highlighted the existing challenges within China's property sector and underscored the necessity for reforms in the pension system to ensure economic stability. He emphasized the importance of these issues by stating, "More needs to be done on the property sector," while addressing the media.

Furthermore, Srinivasan asserted that China possesses the capacity to step up stimulus efforts in the near term. However, he cautioned that any such measures must be balanced by fiscal consolidation strategies to maintain economic health over the medium term.

(With inputs from agencies.)