Q2 GDP may drop below 7%, says government adviser

China’s second quarter GDP growth could dip below an annualized 7% rate if activity does not pick up in June according to a government advisor, the lowest forecast of any government or private economist, Reuters reported. “GDP growth in the second quarter could fall below 7% if there is no significant improvement in economic data for June,” said Zheng Xinli, deputy head of the China Center for International Economic Exchanges, a government think tank based in Beijing. Zheng estimated industrial output rose 9.3% in April and 9.6% in May, and year-on-year industrial output growth usually outpaces GDP growth by around 3%-5%. China’s deepening economic slowdown spurred policymakers to cut interest rates last week for the first time since the global financial crisis began.