Mumbai, Feb. 19 -- International Monetary Fund (IMF) has stated in a latest update that despite being buffeted by multiple shocks, the Chinese economy has shown remarkable resilience and continues to be a significant driver of global growth. China's growth model, which has historically delivered impressive gains, now faces challenges. The protracted adjustment in the property sector and spillovers to local government (LG) finances, amid a debt overhang, have led to continued weakness in domestic demand and deflationary pressures.
IMF noted that the deficiency in domestic demand has been mitigated by strong export growth, in part supported by real exchange rate depreciation reflecting weaker inflation in China relative to trading partners. ...