Chinese growth forecasts slashed on soft data

Banks have slashed their forecasts for Chinese growth following weak data. JP Morgan cut their figure from 8.2 per cent to 7.8 per cent and RBS reduced their estimate to 7.8 per cent from 8.4 per cent. Chinese GDP for the first quarter came in lower than expected at 7.7 per cent, rather than the eight per cent growth anticipated.

Tim Condon, head of Asian economic research at ING in Singapore:

Industrial production is unexpectedly weak and that's the source of weakness in GDP. Based on this, the consensus forecasts for GDP are going to be headed lower and we'll certainly be looking at ours.

The German engineering association, the VDMA, has said that a weak Chinese market is a concern. German exports to China fell by a quarter in 2012. Weaker than anticipated Chinese growth could have rammifications for the Eurozone's recovery.