Gundlach on Chinese economic growth: 'How about a minus 7?'

The world's second largest economy is slowing down and dragging all resource-based economies down with it.

China's leaders want to move the country from an investment-led economy to one based on consumption.

But the rebalancing is proving difficult and signs of a slowdown are not hard to find.

Consensus forecast for 2014 growth in China is 7.4%, just below the official target rate set by the government. GDP expansion at 7.4% would be the slowest in 24 years.

Something that's causing alarm among resource companies reliant on Chinese demand.

Jeffrey Gundlach, co-founder and chief investment officer of DoubleLine Capital, last week made some choice comments on the outlook for China and gold.

Reuters reports speaking at the $49 billion fund's annual investment conference in New York, Gundlach said that he liked gold, but that China's in deep trouble:

"I'm actually sort of fond of gold as a diversifier now," he said, adding however that he isn't convinced gold will reach $10,000 an ounce.

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"A 23-fold increase in the economy has got to be due for not just a plus 7 – how about a minus 7", he said in reference to Chinese economic growth.