The International Monetary Fund warned Tuesday that China's economic recovery could falter without decisive action by Beijing to stem a crisis in its property sector, while maintaining its growth forecast for the country at 4.6 percent this year.

"Domestic demand will remain lackluster for some time unless strong measures and reforms address the root cause," the IMF wrote in its World Economic Outlook report, saying that "credit booms and busts never resolve themselves quickly, and this one is no exception."