MercoPress. South Atlantic News Agency

China's economy expanded 6.7% in the first quarter, in line with Beijing growth target

Investment in industrial assets and infrastructure registered a surprise jump by 10.7% in the three months to March, when compared to the same period last year.

China's economy grew 6.7% in the first quarter of the year compared to the same time last year, announced the government. It is the slowest quarterly growth in the Chinese economy in seven years, but in line with expectations and China's own growth targets.

 In the final quarter of last year, the economy expanded by 6.8%. Friday's figures confirm the slowing trend in the world's second largest economy.

But there are pockets of growth. Investment in industrial assets and infrastructure registered a surprise jump by 10.7% in the three months to March, when compared to the same period last year.

Consumers also appear to be spending, with retail sales showing a robust 10.5% jump for March. That fits Beijing's attempts in recent years to transform China from an export-led economy to a consumer-led one.

China earned the label of being “the factory of the world” from decades of manufacturing activity, the main driver of its rapid economic growth. But factory activity has drastically slowed, as foreign companies relocated to cheaper manufacturing bases around Southeast Asia.

Last year marked the slowest growth for the Chinese economy in 25 years, with 6.9% growth compared to 7.3% in 2014. The government has set the growth target rate for 2016 at a lower range of 6.5%-7%.

Premier Li Keqiang told the annual meeting of parliament last month that China “will face more and tougher problems and challenges in its development this year, so we must be fully prepared to fight a difficult battle”.

The National People's Congress (NPC) mapped out a new five-year plant for the economy and announced measures which included cutting high debt, streamlining state-owned enterprises, and reforming financial markets.