An outspoken former finance minister in China warned the country’s property market downturn will continue and worsen deflationary pressures, a rare admission of the risk of falling prices from a high-profile figure.
“Households have poor expectations for the future because homes are losing value,” former Finance Minister Lou Jiwei said during a speech at the Caixin Summit in Beijing on Friday. “This will drag on the growth of consumption and amplify the deflation trend.”
