China is poised to post its worst quarterly growth since the financial crisis, according to a CNNMoney survey of economists.
Gross domestic product is forecast to have expanded by 6.9% in the second quarter, compared to the same period last year, according to the survey’s median estimate.
The estimate is a bit lower than the 7% GDP growth rate from the first quarter. Looking ahead, economists expect to see 6.95% annual GDP growth for this year, and even slower expansion at 6.5% in 2016.
There’s no question about it: After years of breakneck growth, China’s economy, the world’s second-largest, is now slumping. Economists say the government has no choice but to continue working to stimulate the economy, especially as data points continue to disappoint and risks keep piling up.
The numbers are expected “to show another tepid growth in real activity,” said UBS economists Harrison Hu and Wang Tao. The “sluggish economy … is prompting the authorities to escalate policy supports.”