Consequences of an abrupt slowdown in China’s property market
- Bjørnar K. Slettvåg
- Economic Commentaries
The Chinese property market probably poses one of the greatest downside risks to the global economy in 2014. Construction starts this spring were 20 percent lower than at the same time last year (see Chart 1). At the same time, the stock of unsold properties has risen, and price increases have edged down. In this commentary, we take a closer look at developments in the Chinese real estate market and at transmission channels to other sectors of the Chinese economy and to the global economy.
This series consists of short, signed articles on current economic issues and are only published on Norges Bank’s website.