China sparked more concerns over a slowdown for the world's second-biggest economy yesterday, as a government adviser warned growth could slip below 7 per cent in the second quarter.
The forecast by Zheng Xinli, a former deputy director of the Chinese communist party's research office, is among the most bearish by any government or private- sector economist.
Beijing showed its alarm over China's economy last week as it cut interest rates for the first time since the financial crisis. Analysts are currently pencilling in annualised growth of 7.9 per cent between April and June as the economy slows for the sixth quarter in a row, although it is expected to expand by 8.2 per cent over the year.
The Chinese government is also fast tracking infrastructure projects to stimulate growth.