China’s Economy to grow by 6.93 Percent in Second Quarter

China’s economy will grow by 6.93 percent year-on-year in the second quarter, according to a report.

The report by the National Academy of Economic Strategy (NAES), which is affiliated to the Chinese Academy of Social Sciences on Friday said the growth forecast is lower than the 7-percent annual growth target, but 0.13 percentage points higher than the earlier NAES forecast, reported Xinhua news agency.

Economists took various factors into consideration, including a continuous fall in foreign trade, steady consumption and an investment increase, said NAES deputy director Wang Hongju, who is also one of the chief economists that drafted the report.

Gao Peiyong, NAES head, expected more cuts to bank interest rates and reserve requirement ratio (RRR) in the second half of the year, and advised the country to boost infrastructure investment to shore up growth.

The consumer price index is likely to grow by 1.3 percent year-on-year in the first half year, said the report, well within the annual target of 3 percent. (IANS)