China GDP grows by 7% beating Reuters 6.9% forecast

Reuters' poll forecasted a 6.9 percent gross domestic product (GDP) growth for China, but the giant Asian country surpassed it with a 7.0 percent on-year growth for the second quarter.

China's industrial output grew by 6.8 percent, beating Reuters poll forecast of 6.0 percent. Reuters also forecasted a 10.2 percent growth in retail sales, but China beat it with a 10.6 percent increase.

But this steady pulse prompts questions over data accuracy. It is common for analysts to doubt the accuracy reported by the world's second-largest economy. However, according to a spokesperson from the National Bureau of Statistics in China, the GDP figures weren't inflated and that the impressive improvements were "hard won."

Despite the good news in growth, China is facing some issues in their economy. After years of rapid growth, China's economy is now slumping, according to reports from CNN. Economists predict a 6.95% annual GDP growth for 2015, and a 6.5% expansion in 2016. China's central government has cut interest rates thrice this year. The most recent one was merely two weeks ago. That rate cut came a little early, which is why experts speculates that it was a defensive strategy against the stock market plunge this past several weeks. Stocks lost 3% in Shanghai while Shenzen's stocks lost 4.2%.

Another rate cut may happen in the second half of 2015, as predicted by experts. As the Wall Street saying goes, "Buy on the rumor; sell on the news."

China's economic growth last year was 7.4%. Growth in trade, investment, and domestic demand are slowing down for China. However, the fact that the country's economy remained steady is something to be commended.

China economist Luis Kuij said, "The booming financial sector in the first half was a significant, but not dominant contributor to the strong service sector performance.