China’s economic growth for the second quarter beat expectations, rising 7 percent from a year earlier, spurring some analysts to cry foul and others to say I told you so.
We sifted through the reactions to Wednesday’s unexpectedly steady numbers, so you don’t have to. Here’s what the experts are saying:
Adam Myers, senior market strategist at Credit Agricole, told CNBC he doesn’t trust the data. “You only have to look at commodity prices to see that there’s a disconnect with what the official Chinese data is showing and what really the demand in the underlying economy is having for things like raw materials. We’ve been talking about that for months and still the Chinese data remains relatively solid, but all the underlying anecdotal evidence points to a much deeper slowdown in China. Put on top of that the wealth and credit effects that we’ve seen through the Chinese stock markets in the last couple weeks, a much larger deterioration appears to be on the cards than the official data would indicate.”