What Happens to U.S. Activity and Inflation if China’s Property Sector Leads to a Crisis?
![Photo: Construction site of three tall building towers with threes crane](https://libertystreeteconomics.newyorkfed.org/wp-content/uploads/sites/2/2024/03/LSE_2024_china-crash_akinci_460.jpg?w=920)
A previous post explored the potential implications for U.S. growth and inflation of a manufacturing-led boom in China. This post considers spillovers to the U.S. from a downside scenario, one in which China’s ongoing property sector slump takes another leg down and precipitates an economic hard landing and financial crisis.