First quarter 'sound' despite slower growth (2)

Zhu Qingguo, chairman of the Guangdong Textile Industry Association, said: "Last year was the worst year for the textile industry in the past decade with a sharp decrease in orders for manufacturers."

"The industry is trying to fight back slowly this year although the overall economy hasn't recovered yet," he said.

The complicated international economic situation and the faltering recovery have influenced China's growth, the NBS spokesman said.

"The increasingly fierce quantitative easing monetary policy in many developed economies added currency appreciation pressure and reduced exports in emerging economies," Sheng said.

Jan-Egbert Sturm, director of the think tank KOF Swiss Economic Institute, said the slower recovery in the European countries facing crises is of less concern to the Chinese economy than one might think, "as most of the trade between the EU and China relates to countries like Germany".

JPMorgan economist Zhu predicted that the eurozone is likely to come out of the recession in the second half of this year, which may help stabilize China's exports.

Zhang Zhiwei, chief economist in China with Nomura Securities, said the policy is unlikely to loosen further, considering the current high debt level and the associated financial risks, which may slow growth toward 7.3 percent in the second half.

"However, any GDP rate below 7.5 percent would push policymakers to loosen policy and stimulate growth," he said.

•Related reports:

China's Q1 GDP growth slows to 7.7 pct

China's gross domestic product growth slowed to 7.7 percent in the first quarter but was still above the 7.5-percent full-year target, the National Bureau of Statistics announced on Monday.

China's Q1 fixed-asset investment up 20.9 pct

China's urban fixed asset investment rose 20.9 percent year on year to 5.8092 trillion yuan (929.47 billion U.S. dollars) in the first quarter of 2013, at a same pace year on year, the National Bureau of Statistics (NBS) said on Monday.

China's retail sales up 12.4 pct in Q1

China's retail sales grew 12.4 percent year on year to 5.5451 trillion yuan (887.22 billion U.S. dollars) in the first quarter of this year, down 2.4 percentage points year on year, the National Bureau of Statistics said on Monday.

China's Q1 industrial output growth slows to 9.5 pct

China's industrial value-added output growth eased to 9.5 percent year on year in the first quarter, down 2.1 percentage points from the same period last year, the National Bureau of Statistics (NBS) said Monday.

Chinese firms recovering confidence in Q1

Chinese companies were struggling to recover their confidence in the first quarter of this year amid a slowdown in economic growth, according to an index released by the National Bureau of Statistics (NBS) on Monday.

We Recommend:
Apple CEO apologizes over China warranties	Nokia closes its flagship store in Shanghai	The 10 most expensive houses in China
$52 million super luxury yacht	The many stories behind Apple's bite on its logo	Looking abroad for a new home