China Fiscal Pack Insufficient to Curb Deflation Risks, IMF Says.

The International Monetary Fund (IMF) believes that China's recent fiscal measures are insufficient to combat deflationary risks in the economy. While the policies could potentially boost growth, the IMF suggests that more government spending is necessary to address the property crash and price pressures. The IMF recommends that China allocate about 5% of its GDP to stabilize the housing market, which could amount to a package worth around 6.3 trillion yuan. The real estate crisis has led to a significant decline in household wealth and a prolonged period of deflation, with economic growth slowing to its weakest point in six quarters. [Extracted from the article]