There will be pressure on global growth from China’s real estate market.

A third straight month of declines in new home prices was reported Thursday by the National Bureau of Statistics (NBS), despite Beijing’s efforts to stabilize the sector. Despite Country Garden’s struggles, the data comes at a time when the company was once the biggest homebuilder in the country.

According to the International Monetary Fund (IMF), the slowdown in China’s property market will also negatively affect global growth.

Refinitiv Eikon calculated that new home prices in 70 major cities fell by 0.1% from a year ago based on NBS data in September. Prices declined 0.2% month-over-month in September, following a 0.3% drop in August.

China’s economic recovery is hampered by the persistent weakness of the housing market. According to the NBS on Wednesday, the country’s gross domestic product increased by a better-than-expected 4.9% in the third quarter. A robust increase in consumer spending fueled that growth.

Despite this, the real estate sector remains a major problem. Investments in property plunged 9.1% in the first nine months of 2023, signaling a deterioration in investor sentiment.

Putting a damper on global growth prospects is China’s property downturn, according to the IMF.

“The global outlook … faces pressures from China’s worsening property crisis, tight policy stances around the world, the consequences of Russia’s war in Ukraine, the most recent conflict, and growing geoeconomic fragmentation,” said Krishna Srinivasan, the IMF’s Asia and Pacific Department director.

Due to a deeper property downturn, the fund recently downgraded China’s growth forecast to 5% for 2023 and 4.2% for 2024.