Chinese Advisor Warn Growth Could Dip Below 7%
Created: 2012-06-13 14:08 EST
China’s economy has been slowing, and now a Chinese government advisor has warned it could slow further.
Zheng Xinli, the deputy head of a Beijing think-tank said on Wednesday that the country’s growth could slip to below 7% in the second quarter.
Zheng’s remarks were published by State-run People’s Daily overseas edition. He warned the drop in growth could happen if there were no significant improvements in economic data for June.
The latest assessment comes after official and private-sector economists gradually cut forecasts on China’s economy this year. Figures in May have shown disappointing domestic figures, with big drops in retail sales, and the lowest fixed asset investment growth in nearly a decade.
The slowdown has prompted China's central bank to cut interest rates by 25 basis points – the first time since 2008 – in a bid to boost the economy.