0738 GMT [Dow Jones] China is experiencing its worst floods since 1999, which poses downside risks to its economic growth in the third quarter, ANZ economists say. China typically gets flooding in July and August, but this year’s season is expected to be worse than usual due to a strong El Nino, they say. Hubei, Jiangxi, Anhui, and Jiangsu provinces are struggling with flooding. Together they account for around one fifth of China’s gross domestic product. “We expect some negative impact on third-quarter GDP growth unless the government launches stimulus measures to offset the impact,” they say. The economy likely expanded 6.7% in the second quarter from a year earlier, a tad slower than the 6.6% in the first quarter, according to a median forecast of 15 economists polled by Dow Jones. (liyan.qi[a]wsj.com)
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