China's economy grew 7.4 percent year on year in the first quarter of 2014, the National Bureau of Statistics (NBS) revealed on Wednesday.

The NBS said that preliminary data showed the nation's gross domestic product (GDP) reached 12.8 trillion yuan ($2.08 trillion) in the first quarter, 7.4 percent higher than the same period of the previous year, and a 1.4 percent increase on the year on year figure.

"Judging from the data on employment, incomes, prices, and structural adjustment of the first quarter, although economic growth has slowed down slightly, it is still running in a reasonable range," said Sheng Yunlai, spokesman of NBS. "China's growth is still stable and the economy is generally in good health."

7.4 percent GDP growth appears reasonable

Official data show that China's economy grew 7.4 percent year on year in the first quarter, a drop of 0.3 percentage points over the same period of the previous year, but still in the range of the growth target of 7.5 percent. From a global perspective, 7.4 percent is a relatively high growth rate, said Sheng.

Sheng emphasized that to judge whether a growth rate is in a reasonable range, in addition to looking at the pace of growth, a more important indicator is data on employment and incomes. In the first quarter, the overall situation on employment and incomes was good.

New progress in structural adjustment

Optimization of the industrial structure continues. In the first quarter, the added value of the tertiary industry in GDP accounted for 49 percent, up 1.1 percentage points over the previous year. At the same time, traditional industries such as steel and cement were being outpaced by high-tech industries, which are more eco-friendly and have better future prospects.

Another positive change in terms of structure is that the relationship between investment and consumption is achieving a better balance. Investment growth declined in the first quarter, but the growth rate of total retail sales remained relatively stable, and as a result the contribution of public consumption to economic growth has risen. Full consumption expenditure accounted for 64.9 percent of GDP in the first quarter, up 1.1 percentage points over the same period last year.

This article is edited and translated from 稳中有进稳中向好态势没改变 Source: Jiefang Daily; Author:Yang Qun