Country Garden, one of China’s largest property developers, has warned that it could lose up to $7.6 billion (£6 billion) in the first six months of the year.

The announcement is the latest indication of the world’s second largest economy’s significant problems.

China fell into deflation for the first time in more than two years, according to government numbers released this week.

Exports have also plummeted, and youth unemployment is at an all-time high.

Country Garden Group “is expected to record a net loss ranging from approximately RMB45 billion [$6.24bn; £4.9bn] to RMB55 billion for the six months ended 30 June 2023,” the business said in a Hong Kong Stock Exchange announcement.

The anticipated deficit contrasts to a $265 million profit at the same time previous year.

The company also announced the formation of a special task force, led by its chairman Yang Huiyan, to discover measures to turn the business around.

Moody’s lowered the company’s rating earlier on Thursday, citing “heightened liquidity and refinancing risks.”

It came as China faced a slew of economic hurdles, raising concerns about the pace of its post-pandemic recovery.

Official numbers released earlier this week showed that the country’s exports plummeted by a larger-than-expected 14.5% in July compared to the previous year, while imports decreased by 12.4%.

Youth unemployment is at an all-time high, and a record 11.58 million university graduates are scheduled to enter the labor force this year.

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On Thursday, US Vice President Joe Biden described China’s deepening economic problems as a “ticking time bomb.”

Mr. Biden recently stated that “China is in trouble” during a fundraising event in the western state of Utah, citing the country’s high unemployment and aging workforce.

The country is also dealing with increasing local government debt and housing market issues.

Evergrande, previously China’s largest real estate firm, revealed this month that it will lose $81.1 billion in 2021 and 2022.

The company, which went bankrupt in late-2021, finally reported its long-overdue earnings to stockholders.

Evergrande has been saddled with an estimated $300 billion in debt.

The massive losses demonstrate how profoundly the developer has been shaken in recent years by China’s housing market crisis.