Capital Economics: Chinese Q2 GDP to come in well above consensus

Q2 GDP will be released by China’s statistics bureau today. Economists expect headline growth of 6.9 per cent for the second quarter, according to a Reuters poll. This expectation is despite recent central bank measures to curb growth from slowing. The central bank has lowered benchmark interest rates four times since November and has cut reserve requirement ratios for banks by at least 1.5%. In a view different from the consensus Capital Economics believe “Q2 GDP growth will come in well above consensus thanks to stimulus and surge in financial sector activity”.